Taxing Smarter: Advancing Reform Through Research and Partnership

<jats:p>We have entered a new phase in global development. Aid is retreating, and is unlikely to return to previous levels. Debt servicing costs have risen sharply, absorbing a growing share of public budgets and making additional borrowing difficult. At the same time, spending needs are increasing – from climate adaptation and infrastructure, to health, education, and social protection. Taxation has long been the largest source of government revenue in lower-income countries, and a primary source of development finance. As external finance becomes increasingly constrained, its centrality is becoming even more pronounced. Governments are being pushed to rely more heavily on their own revenue systems.</jats:p>