As a follow-up to the first PublicExpenditure Review (PER), this note reviews fiscalmanagement by the Government of National Unity (GoNU)through 2008 budget performance, including pro-poorspending, and how do its main features compare to the fiscalmanagement under the first phase of the post-CPA interimperiod (2005-07)? The note also runs through the highlightsof the key features of the GoNU 2009 budget and what hasbeen the impact of the global crisis on the budgetperformance through the first quarter. The main objective isto highlight fiscal lessons for the remaining period of thepost-CPA interim period. The note is structured around thefollowing six sections: review of the economic assumptionsunderlying the 2008 budgets, aggregate fiscal performance,revenue performance, expenditure performance, pro-poorspending, and the 2009 budget analysis followed by actualoutturns through the first quarter.