As the UN General Assembly convenes and the world turns its focus to Global Goals Week, one theme keeps surfacing in my conversations here: how can countries finance their sustainable development aspirations? The financing gap for the SDGs is measured in trillions of dollars each year. At the Fourth International Conference on Financing for Development, 192 countries adopted the Sevilla Commitment, recognizing a hard truth: this US$4.3 trillion annual gap cannot be closed by money alone. 

Financing is essential, but without strong institutions to manage resources fairly, accountably, and effectively, funds will not translate into better outcomes for people and the planet. This week we are launching a new Global Progress Report on Sustainable Development Goal 16–Indicators on Peaceful, Just and Inclusive Societies, which sheds light on these challenges. Produced by UNDP together with United Nations Office on Drugs and Crime, Office of United Nations High Commissioner for Human Rights, and other agencies and institutions, the report takes stock of global progress on building the governance foundations of sustainable development.

It shows how corruption, illicit financial flows, and institutional weaknesses continue to divert resources away from development. Without strong institutions, transparent systems, and accountable leadership, even the most generous financing fails to deliver lasting development. However, the report also points to solutions. By strengthening governance, countries can mobilize financing and make every dollar go further. Here are five priorities for action:

1. Invest in SDG 16 data

Data is the backbone of sound finance. Reliable governance statistics, on corruption, justice and transparency, can support tax compliance, reduce leakages and build trust in institutions. This trust is essential. Citizens are more willing to pay taxes, and investors are more confident to commit when decisions are backed by credible data.

Governance data also supports responsible debt management and helps governments identify risks early. Above all, it provides the evidence needed to tackle systemic threats like conflict, exclusion, and corruption that undermine financial stability. Investing in SDG 16 data is not a luxury; it is a prerequisite for mobilizing and managing resources effectively.

2. Curb illicit financial flows

Illicit financial flows (IFFs) siphon off billions that could otherwise fund development. In 2022, Namibia lost over 8 percent of its GDP (GPR 2025). Globally, tax evasion accounts for some of the largest leakages, depriving countries of vital revenues for public services and investment. Stopping IFFs requires reforms in taxation, trade transparency, and law enforcement. But no country can succeed alone—these flows cross borders too easily. International solidarity and cooperation are indispensable. Tackling IFFs is both a governance imperative and a global responsibility.

3. Strengthen domestic resource mobilization

Domestic resources remain the most sustainable source of finance. Yet the SDG 16 Report shows worrying trends: one in five people worldwide reported being asked to pay a bribe in 2024, while budget reliability is weakest in low-income countries.

Transparent, accountable fiscal systems increase people’s willingness to pay taxes and attract investment. That is why UNDP supports more than 80 countries through Integrated National Financing Frameworks (INFFs) to align budgets with SDG and climate goals. Our ambition is to expand this support to 120 countries in the next 18 months, helping governments turn public finance into a tool for sustainable development, and supporting the governance reforms and policy coherence that help them deliver.

4. Make budgets deliver fairly

Budgets are a test of fairness. While two-thirds of people globally report satisfaction with government services, satisfaction in healthcare drops from 65.6 percent in high-income countries to just 42.4 percent in low-income ones. Budget processes must deliver health care and other services fairly, especially when resources are constrained.

Participatory budgeting and citizen oversight mechanisms can help ensure that spending reflects people’s needs. The upcoming Second World Summit for Social Development will be an opportunity to underline that social justice, human rights, and peace all depend on budgets that deliver for everyone, not just the privileged few.

5. Mobilize finance for climate action

The scale of climate finance needs are immense, but mobilizing and delivering it for impact depend on governance. Strong institutions are essential to ensure that funds are allocated fairly, corruption is prevented, and vulnerable communities receive support.

Transparent budgeting and reporting foster trust, while inclusive decision-making empowers citizens to shape climate policies. Without these governance foundations, climate finance will never reach the scale or effectiveness needed to secure lasting and just climate outcomes.

Looking ahead

The Global Progress Report on SDG 16 makes one thing clear: governance and finance are inseparable, as strong institutions reduce leakages, increase trust, and create an enabling environment for public and private investment. 

UNDP’s Public Finance for the SDGs initiative, launched in Seville, Spain, partners with nearly 100 countries to strengthen governance by aligning taxation, budgeting, debt, and risk finance with sustainable development, while focusing on inclusion and accountability to help mobilize billions in additional revenues and sustainable investments. 

And as the international community prepares for the Second World Summit for Social Development being held in Qatar and COP30 later this year in Brazil the message is urgent: investing in governance is the fastest way to close the gap between commitments and results. By acting with integrity, collaboration, and urgency, we can ensure that resources, whether for climate, health, or justice, are used where they matter most, in building a more peaceful, just and inclusive world.