Results-oriented budgeting in Egypt

|
2013
00
inception. Having said this, it should also be noted that some pilots joined the project in July 2003 and others in 
March 2004. In addition, the project was successful in recruiting local expertise trained on the design and 
implementation of M&E/PBB systems. In order to increase the number of pilots in stage 2, more local 
consultants with similar expert training are needed to support such an initiative; thus, project expansion is 
dependent on the number of consultants available. 
5.0 SUMMARY AND CONCLUSION: LESSONS LEARNT AND THE ROAD FORWARD 
The Egyptian model in results-oriented budgeting has interesting lessons to be learnt in its setting and 
implementation. Contrary to other countr
ies’
experiences, Egypt has followed a reform sequencing process that 
went through the following steps: 1) create awareness in central government, service authorities, and local 
government as to the fiscal crunch and the need to move to results orientation after an intensive research process 
of other countries’
experiences with intermittent assistance received from the World Bank; 2) conclude intensive 
training to move from inputs to outcomes budgeting with hands-on case studies; 3) select pilots based on faith, 
leadership, potential and political commitment; 4) appoint and assign a local project manager for each pilot after 
having had intensive training-of-trainers on results-oriented budgeting; 5) core implementing team heads ran a 
parallel budget exercise that instead of scrapping the classical input-budgeting system, it would add in tandem a 
performance-based budgeting component. Progress pace was tied to the degree of preparedness/readiness of 
each pilot tested according to the results-orientation intake; 6) consultation with different stakeholders 
coordinated by the Minister of Finance among champion pilot ministers, Prime Minister, parliamentary bodies, 
media, pilots’ staffers, etc. 
Once approved by the Cabinet of Ministers, legislation was to be passed mandating the implementation of PBB 
on the whole-of-government approach. However, there were three main constraints to be addressed: 1) national 
statistics at the macroeconomic and microeconomic levels have to be correct and reliable using internationally 
accepted definitions and good practice; 2) all budget processes require the institutionalization of information and 
communication systems (during implementation this constraint was identified and attended to); and 3) the 
budget process (preparation and implementation) requires revisiting during its results-orientation transition in 
order to devise a logical budgeting modus operandi that is characterized by effectiveness and timeliness.
Each pilot had its own unique experiences, for example some encountered the expected institutional resistance 
at early stages of project implementation, while others grasped the new operational performance-oriented 
modality faster than their peers. Even the subliminal pilots varied in their degree of readiness at inter- or intra- 
ministry levels. One of the lessons to be learned in this respect is that, aside from MOF’s project oversight, it is 
worthwhile to run periodic meta-evaluation through donor support. This ensures independence of opinion and 
maximizes the benefits arising from cross-country learning dimensions passed on to homegrown local expertise.
In the area of sustainable
17
local capacity building, some features of the project are worthy of special note. 
First, the project has revolutionized the budgeting system by moving smoothly from inputs-based to results-
based budgeting through instituting a self-breeding system that is designed, executed and managed by budgeting 
and budgeting-related civil servants. 
Second
, the project’s ethos is to invest 
in building local consultancy capabilities thus ensuring the future 
continuance of the budgeting reform efforts. As such, the pilot ministries have been furnished with well-trained, 
home-based consultants that have access to ongoing learning via hands on experience in the pilots to which they 
are assigned. In addition to the staff employed by the 6 pilot ministries and the 13 subliminal pilots, this critical 
mass is the safety net for the project’s sustainability and continuing success during the project ex
tension period 
and beyond. 
Third, during its effective life the GOE PBB/M&E program has worked on generating learning opportunities 
and a consensual platform on the importance of rewarding top performers and motivating underachievers. In 
order to do this, relevant performance information is recognized as a necessary tool for monitoring and 
evaluation. In addition, decision-making and the use of an incentive system that encourages star performers 
remains a key aspect. Based on this understanding, the pilots advocate the need for reliable MIS/DSS within 
their organizations. This is an expensive venture for a limited-income country undergoing transition to a more 
democratic rule; however the ball started rolling through individual initiatives within some line ministries, and 
seemingly in tandem with the comprehensive government
’s
automation project. 

---

Interdisciplinary Journal of Research in Business ISSN: 2046-7141
Vol. 2, Issue. 9, (pp.13- 25)