The concept of ‘fiscal space’ has emerged in the context of the Millennium Development Goals (MDGs). It is clear that enormous efforts are required from international donors and government and society in developing countries to achieve the goals. Whether a poor household can escape poverty and malnutrition, send its children to school, get access to safe water and good housing, live a healthy live, etc. depends on three factors: whether its income increases sufficiently, whether the government provides the required services and support and whether the international community assists where necessary.