__NOTOC__<small-title />[[Image:financing streams icon.png|right|100px80px|]]
The main financing sources to recover the [[Costs of WASH Service Delivery - Introduction | costs of water, sanitation and hygiene service delivery]] are (a combination of) [[Taxes | taxes]] levied by national or regional governments, [[Transfers | transfers]] made by development partners, and [[Tariffs | tariffs]] or own contributions paid by users of a service (see figure 1). These financing sources in the water and sanitation sector are also known as the ''three T''s (e.g. taxes, transfers and tariffs).
'''[[Taxes]]''' refer to funds originating from domestic taxes that are channelled to the sector via transfers from all levels of government, including national, regional and local ([[#GLAAS|GLAAS]], 2012). Such funds would typically be provided as subsidies for capital investment or operations. ''Hidden'' forms of subsidies may include tax rebates, soft loans, e.g. loans at a subsidized interest rate, or subsidized services, e.g. subsidized electricity.
===Examples===
'''Financing flows''' <br>
The way in which the main financing streams, e.g. taxes, transfers and tariffs, typically circulate in the water and sanitation sector is depicted in figure 2. The main actors involved are the water, sanitation and hygiene service providers, households and domestic governments, and development partners.
[[Image:financing sources fg 3.jpg|thumb|none|500px|Source: DANVA et.al, 2012]]
===Key documents===
* Fonseca, C. and Cardone, R., 2003. [http://www.irc.nl/page/7582 Financing and cost recovery]. (Thematic overview paper / IRC ; 7). The Hague, The Netherlands: IRC International Water and Sanitation Centre
* Hervé-Bazin, C., 2012. [http://celinehervebazin.files.wordpress.com/2012/03/eureau-3ts-short-guide-version-internet.pdf ''3Ts'': Tariffs, Taxes and Transfers in the European water sector: short guide]. Brussels, Belgium: EUREAU
* OECD. 2009. [http://www.oecd.org/env/42350563.pdf Managing water for all: an OECD perspective on pricing and financing]. Paris: OECD.
===Links===
[http://www.irc.nl IRC International Water and Sanitation Centre] is a knowledge broker, innovator and catalyst of change within the water, sanitation and hygiene (WASH) sector working internationally and in selected focus countries and regions. IRC seeks to extend WASH services to the less privileged, while ensuring that services are based on the sustainable use of water resources, are appropriately managed, and are better governed. IRC works in partnership with governments, the public and private sector, Dutch and international organisations, UN institutions, development banks and non-governmental networks and organisations. For more information see: [http://www.irc.nl/financing Financing and Cost Recovery]
<div id="GLAAS">'''GLAAS'''</div>
[http://www.who.int/water_sanitation_health/publications/glaas_report_2012/en/index.html Global Analysis and Assessment of Sanitation and Drinking-Water (GLAAS)] is produced every two years by the World Health Organization (WHO) on behalf of UN-Water. It provides a global update on the policy frameworks, institutional arrangements, human resource base, and international and national finance streams in support of sanitation and drinking-water.