This is the second and last module of a programmatic Public Expenditure Review (PER). The programmatic PER is intended to support the Government of Malawi to analyze: 1) fiscal risks and sustainability; and 2) the efficiency and equity of public expenditure, particularly in human development sectors. The first module, ‘Putting Fiscal Policy on a Sustainable Path’, analyzed recent macro-fiscal trends, fiscal risks and sustainability, and the policies required to manage risks and maintain sustainability. This second module, ‘Strengthening Expenditure for Human Capital,’ includes both crosssectoral and sector-specific analysis aimed to improve the effectiveness of using public resources for human capital development. The cross-sectoral work looks at aggregate spending levels for human capital and relevant aspects of the intergovernmental fiscal transfer system. Sector-specific reviews are presented for the education, health and social protection sectors.