Chapter 4 | Page 170 revenue mobilisation, in light of these structural, process and outcome challenges? Policy challenges can be translated into policy indicators that represent the efforts of the State in these areas. These can be categorised as structural, process and outcome indicators, as described below. In relation to structural challenges, governments should take the following policy actions: design tax laws and regulations to maximise revenue; explore and strengthen the avenues for non-tax revenue; strengthen legal and institutional structures necessary to borrow adequate funds; and strengthen institutional capacity to effectively manage debt. These policy elements reinforce each other and strengthen the capacity of the State to overcome structural challenges in maximising revenue. In relation to process challenges, the State should focus on strengthening the power and authority of tax authorities in order to enhance their effectiveness; develop appropriate polices to address revenue loss; direct policies to enhance tax collection; strengthen the role of monetary reserves and debt to complement State budgetary resources when required. Strengthening the capacity of the State to optimise the process of revenue generation at the domestic level, thus, requires attention to policy elements with the highest impact in these areas. Policy options in addressing the outcome challenges identified here should incorporate assurances that resources raised through taxation, non-tax, and debt and deficit financial tools are adequate for investment in social services; that revenue is sustainable and does not endanger future revenue capacity; and that debt and deficit financing is sustainable and manageable without sacrificing the State’s capacity to repay. These structural, process and outcome challenges and their associated policy indicators illustrate the complex interplay of macroeconomic factors that impact on the State’s ability to raise adequate revenue and can be used as tools to strengthen State commitment to mobilising adequate domestic resources for ESC rights realisation. Developing and customising specific qualitative indicators on these policy areas would involve taking into

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