The objective of the Chad PublicExpenditure Analysis (PEA) is to examine the technicalefficiency and effectiveness of public expenditure, therebycreating fiscal space for more social sector spending. Withcontinued pressures to rationalize expenditure, thegovernment of Chad is interested in finding options toimprove the efficiency and effectiveness of public spending,especially in the education and health sectors. In addition,Chad needs to urgently develop structural growth driverswhich makes adequate social sector expenditure a priority.Therefore, this PEA explores options to improve (non-oil)revenue mobilization and channel oil revenues towards thesesocial sectors. Finally, a series of policy recommendationsis derived from analysis. The PEA is organized around fourchapters: chapter one presents short term fiscaldevelopments, long term trends and a medium termmacro-fiscal framework. Chapter two serves as an overviewand presents detailed analyses of domestic revenues andcentral government expenditures. Chapter three focuses onthe education sector by: (i) analyzing trends andcomposition of education spending; (ii) examining efficiencyin the management and utilization of resources; and (iii)evaluating technical efficiency. Chapter four provides adescription of public spending bottlenecks in the healthsector while examining resource and expenditure patternswith a focus on technical efficiency and equity of publichealth spending.