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 inline with other legal and political ones