Thank you, Co-Chairs.

The Group of 77 and China reaffirms that public policies and the mobilization and effective use of domestic public resources, on the basis of national ownership, play a central role in financing sustainable development and the Sustainable Development Goals. For that to come to fruition, it is essential to scale up demand-based institutional, technological, and human capacity-building support to developing countries for fiscal systems and domestic resource mobilization.

We underscore the need to leverage national fiscal policies and systems for sustainable development priorities, including by ensuring progressivity and efficiency across fiscal systems to address inequality and increase revenue and encouraging the broadening of the tax base, with full respect to tax sovereignty, and in this context, we welcome the emphasis placed on strengthening domestic resource mobilization.

We further commend the inclusion of language addressing illicit financial flows and promoting fiscal transparency. These are critical elements for safeguarding and maximizing domestic revenues.
The Group emphasizes that effectively tackling tax evasion, corruption, and related leakages is essential to ensuring that domestic resources are mobilized, retained, and deployed in support of national development objectives.

In addition, the Group of 77 and China stresses the importance of establishing robust and innovative frameworks to enable sustained private sector participation in development financing, in line with country specific circumstances. Public-private partnerships, blended finance mechanisms, and targeted incentives for sustainable investments may be promoted, subject to the specific priorities, development goals, and manner of granting such incentives of each nation.

These instruments should serve to complement - not substitute - public finance, especially public financial resources from developed to developing countries, while fully respecting national ownership and development priorities.