Debts.
Fiscal policy is concerned with 1)revenues like taxes , 2)expenditure for public and 3)debts from public both, internal and external.

Fiscal policy refers to the government's decisions and actions related to taxation, public expenditure, and revenue generation. It is an important tool used by governments to influence the overall economy and achieve certain economic objectives. Through fiscal policy, the government aims to stabilize the economy, promote economic growth, address income inequality, and ensure social welfare.

1. Taxation:
Taxation is a key component of fiscal policy. The government levies taxes on individuals and businesses to generate revenue. Taxes can be progressive, proportional, or regressive, depending on the government's objectives and the income distribution goals. By adjusting tax rates, the government can influence the disposable income of individuals and businesses, impacting their spending and saving behavior.

2. Public Expenditure:
Another element of fiscal policy is public expenditure. The government allocates funds for various sectors such as infrastructure development, education, healthcare, defense, and social welfare programs. Public expenditure can stimulate economic activity, create jobs, and enhance the overall well-being of the population. By increasing or decreasing public expenditure, the government can influence the level of economic growth and aggregate demand in the economy.

3. Revenue Generation:
Fiscal policy also focuses on revenue generation. Apart from taxes, the government may generate revenue through other means such as borrowing, fees, fines, and tariffs. Revenue generation plays a crucial role in financing public expenditure and addressing budget deficits. The government must carefully balance revenue generation to ensure economic stability and sustainability.

4. Economic Objectives:
The primary objective of fiscal policy is to achieve macroeconomic stability. This includes controlling inflation, reducing unemployment, and maintaining a stable exchange rate. Additionally, fiscal policy aims to promote long-term economic growth, address income inequality, and enhance social welfare. The government formulates fiscal policies based on these objectives and adjusts tax rates and public expenditure accordingly.

5. Counter-cyclical Measures:
Fiscal policy is often used as a counter-cyclical measure to counteract economic downturns or recessions. During a recession, the government may implement expansionary fiscal policy by reducing taxes, increasing public expenditure, and providing stimulus packages. Conversely, during periods of high inflation or economic overheating, contractionary fiscal policy may be employed, involving higher taxes and reduced public expenditure to control aggregate demand.

In conclusion, fiscal policy encompasses the government's decisions regarding taxation, public expenditure, and revenue generation. It is a critical tool used to achieve economic objectives, promote stability, and address social welfare concerns. By manipulating tax rates and public expenditure, the government can influence the overall economy and steer it towards desired outcomes.