This report critically examines the policies and financing of mental health service provision within primary care and non-governmental sectors, emphasizing the global burden of mental disorders and the disparities in resource allocation, particularly in developing nations. It explores the transition from hospital-based care to community-based services (deinstitutionalization), highlighting the importance of suitable community facilities. The report analyzes the impact of decentralization and health financing reforms on mental health services, including potential risks such as exclusion and increased out-of-pocket payments. It also considers the influence of macro-social and macro-economic factors on population mental well-being and the role of government policies in shaping these outcomes. The analysis references key studies and reports to support its findings, offering insights into the complexities of mental health service delivery and the need for appropriate funding and integration within overall health systems.