This paper provides a review of various sources of finance for poverty reduction. Some salient findings are: declining significance of aid, especially for middle-income countries; aid remains a major source of finance for LDCs; improved government revenue efforts in most developing countries. The paper also highlights revenue losses through trade liberalization, corporate tax concessions and through illicit flows of funds, and provides empirical evidence to debunk negative views about counter-cyclical macroeconomic policies. Some key recommendations are: countries should examine the costs and benefits of corporate tax concessions and the equity impact of indirect taxations, such as value added tax; strengthen tax administration; enhance tax progressivity; international and regional tax cooperation; fulfilling aid commitment and ensuring additionality of aid while dealing with humanitarian crises and climate change.