Strengthening Macroeconomic Management in South Sudan: Implementing the Public Financial Management and Accountability Act, 2011
Type: Policy Briefs
Date: 24/02/2026
Publication Summary
South Sudan’s prolonged macroeconomic instability emanates primarily from failure to enforce fiscal measures (i.e., strengthening governance), rather than the absence of laws or strong policy frameworks. Persistent economic contraction, hyperinflation, currency depreciation, incessant salary arrears, debt accumulation, and declining public confidence reflect sustained failures in the enforcement of the Public Financial Management and Accountability Act (PFMAA) (Ministry of Finance and Planning & Local Government Board [MoFP & LGB], 2013). While external shocks—particularly oil production disruptions—have intensified these challenges, they have merely exposed deeper fiscal management weaknesses, especially in the realms of budget execution, and revenue management, driving home the need for policy prudence.
The PFMAA provides South Sudan with a comprehensive legal foundation to manage public finances responsibly (Ministry of Finance and Planning & Local Government Board [MoFP & LGB], 2013). However, political interference, extra-budgetary spending, opaque oil revenue dealings, and weak oversight institutions have significantly undermined its effectiveness. As a result, fiscal deficits have been financed through central bank advances and oil-collateralized borrowing, fueling inflation and eroding macroeconomic stability (Bec, 2025).
This paper examines the PFMAA as a macroeconomic management instrument, assesses how it has been operationalized in South Sudan, identifies key implementation gaps, and evaluates the macroeconomic consequences of weak enforcement. It concludes by calling on a small set of critically central institutions to take the lead in restoring fiscal discipline, strengthening accountability, and stabilizing the economy through strict adherence to the principles enshrined in the PFMAA. Foremost among these is the Ministry of Finance and Planning (MoFP), which bears primary responsibility for budget formulation, execution, cash management, and enforcement of expenditure controls. Effective PFMAA implementation depends on the MoFP’s capacity and political backing to align spending with available resources and to prevent the accumulation of arrears.
Equally important is the National Legislature (Parliament), whose oversight, approval, and scrutiny functions are essential for enforcing compliance, sanctioning violations, and ensuring transparency in public financial management. The National Audit Chamber also plays a pivotal role by independently auditing public accounts and providing credible evidence to support parliamentary oversight and corrective action. Concentrating reform efforts on these key institutions, rather than dispersing responsibility across many actors, increases the likelihood of meaningful PFMAA compliance and durable fiscal stabilization.