Book Description

Abstract: Budget formulation process is the phase where the decisions are made regarding the allocation of resources. This process should reflect the objectives of the government, which consequently should mirror the priorities of citizens. Post January 2011 Revolution, Egypt witnessed economic, social and political challenges that affected the overall government performance. Due to the intrinsic role of the State budget at political, social and economic levels, specific attention was directed to its efficiency and effectiveness. Consequently, it is normal to question its ability to achieve the stated objectives, especially with the increasing demands of transparency, accountability and social justice. This attention paves the way for introducing reform initiatives for public financial management system in Egypt. Therefore, as a step to understand the foundation of the State budget process in Egypt, this research assesses the budget formulation process in Egypt within the framework of good governance in both the executive and legislative authorities against international standards. Also this research examines the significant factors affecting the process and the extent to which the legal and political contexts in Egypt help improve budget formulation process. Hence, this study provides a roadmap for the government, containing the prerequisites for enhancing budget formulation process in Egypt. In light of these prerequisites, the government should focus on the institutional aspects that include; moving to program-based budget, adopting fiscal decentralization, merging preparation of the recurrent and investment budget under one authority and applying monitoring and evaluation system. Nevertheless, concentrating on the institutional aspects should be in line with other legal and political ones.