Chapter 4 Maximising Public Sector Resources for ESC Rights: Macroeconomic and Policy Perspectives on Domestic Revenue Mobilisation 4.1 INTRODUCTION Public sector resources directly available to the State for its programmes and activities constitute the first key component of the ‘maximum available resources’ model of resource mobilisation for ESC rights presented in Chapter 3. The quantum of public sector resources available for the State depends on a number of factors, such as the level of economic development, prevailing economic conditions, the strength and effectiveness of governance, overall fiscal capacity of the government and other institutional dynamics. As explained in Chapter 3, from a human rights perspective, domestic resources at the disposition of the State can be either financial or non-financial. This chapter addresses the dimension of domestic financial resources, with particular attention to macroeconomic perspectives on revenue mobilisation at the domestic level.1 The main purpose here is to identify what macroeconomic policy options are available for States to maximise domestic revenue for the realisation of ESC rights. To this end, the chapter explores fiscal and monetary policy theories and practice and identifies the most ESC rights-friendly approaches to maximising domestic revenue generation through taxation, non-tax revenue, debt and deficit financing. Macroeconomic perspectives on resource mobilisation are addressed by defining public sector resources from an economic point of view, exploring arguments about fiscal and monetary space, and identifying areas of resource availability. 1 Non-financial resources will be covered in detail in Chapter 6.