Budget expenditures have been on the rise in South Sudan since the Comprehensive Peace Agreement (CPA), reaching levels that are quite in excess of those of its East African neighbors. This note examines to what extent the oil resources that finance most public expenditure are productively used to address the huge development challenges of South Sudan. The note looks at the three key dimensions in which the public budget affects development outcomes: (i) the macro-dimension, i.e. the ability of the budget to shape an overall macro-economic policy that promotes stability and economic growth; (ii) the strategic dimension, i.e. the ability of the budget to translate consistently the nation’s strategic priorities into actual spending patterns; and (iii) the service delivery dimension, i.e. the ability of the budget to deliver quality public goods and services to the population. The primary objective of this brief review of budget policy is to assist the Ministry of Finance and Economic Planning (MoFEP) in identifying appropriate measures to improve the effectiveness of government expenditure with particular focus on health and education sectors.

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