Finance Brief 1: Domestic public finance for WASH: what, why, how?

TITLE:  Domestic public finance for WASH: what, why, how?

AUTHOR(S): Norman G, Fonseca C & TrĂ©molet S

YEAR: 2015

 We define domestic public finance essentially as funds derived from domestic taxes, raised at the national or local level: for example, taxation revenues raised by the national government of Kenya or the municipal government of Nairobi. Of course, domestic public finance is only part of the solution: service delivery in poor communities will invariably involve a mix of a) domestic public finance (derived from taxes and other sources of government revenue), b) user finance (derived from household payments for services received, i.e. from tariffs), and c) donor finance (i.e. development aid).  Likewise, domestic public finance forms part of a wider governance puzzle: improving WASH services requires not just more government investment, but also diverse other elements including (for example) clear institutional mandates.