Prior to the historic decision by the Council of Ministers to completely shut down the country’s oil production, oil revenues accounted for over 98% of the Republic South Sudan expenditures, 99% of foreign exchange earnings, and over 70% of South Sudan GDP. The 10 states of South Sudan depended on transfers from the Central Government for the bulk of their own expenditures. This post outlines macroeconomic impact of the shutdown and possible scenarios that may emerge.—By Peter Biar Ajak, Director of C-SAR