Habitat Agenda - Section IV D-6. Domestic financial resources and economic instruments
Section IV D. Capacity-building and institutional development
6. Domestic financial resources and economic instruments

187. Funds to finance shelter and settlements development mainly come from domestic sources. Significant additional finance is also available from international sources, increasingly from investment funding. The largest impact on the financial base will derive, therefore, from improvements in economic development, sound financial practice and the capacity to mobilize domestic resources, control expenditures and manage budgets efficiently.

188. Financing the future of urban development and sustaining the economic viability of cities represents a particular challenge, which will require innovative systems of finance at the national and local levels. Effective partnerships between the public and private sectors should be promoted, combining local taxes on production and consumption with fiscal incentives for investment by industry, commerce, trade and other private sector services. New forms of municipal finance are needed to meet the future needs of urban economic development and the costs of supporting infrastructure and services.

189. To strengthen national and local economies and their financial and economic base with a view to addressing the needs of sustainable human settlements, Governments at the appropriate levels, including local authorities, should seek to provide an enabling framework which aims to: