Results-oriented budgeting in Egypt

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2013
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effective and efficient way. Outlined below are the major findings from the diagnostic assessment. In each 
section, the team presented both opportunities and obstacles in moving towards results-oriented budgeting. 
3.1 Leadership 
In Egypt, the diagnostic team noted the interest expressed in shifting to a climate of performance on the part of 
many senior government officials, including the president who called for better information to support economic 
decision-making, the prime minister and the cabinet, the minister of finance who had a strong desire to reform 
the Egyptian budget to better support performance and several ministers who were fully abreast of sound 
economic objectives to support this effort and were identified as the necessary core group. 
3.2 Incentives and Key Drivers 
A number of reform drivers instigated the move towards results orientation at a particular point in 
the nation’s 
economic history. They are: 

Egyptian-European Partnership Agreement: In response to this agreement, the industrial 
modernization program was developed to enhance competitiveness of Egyptian industries in the face of 
foreign products
10

Presidential Decree Corporatizing Economic Authorities: The government aimed to improve the 
performance of the public economic authorities and implement a privatization strategy in order to 
eliminate the large portion of government
’
s subsidies allocated to those authorities 

Donor Interest: Several donors had an explicit interest in enhancing public sector performance and 
providing the relevant training, technology and technical support to the country. 
3.3 Mandates or Clear Authorities 
In order to implement a complete results-based management system, logical frameworks require clear mandates, 
institutional goals and objectives. A few Egyptian authorities had mandate that required further strengthening 
using results-based monitoring and evaluation. 
3.4 A Well-Defined Strategy 
Embarking on an ambitious effort such as results-orientation necessitates developing a clear-cut strategy. Prior 
to the team’s visit, the MOF 
who had already studied experience of countries worldwide, started on developing 
a model and identified a few activities underway as potential pilot tests for performance budgeting. The 
ministers understood the importance of using good data for monitoring and evaluation purposes. The team 
considered it a good starting point. 
The next critical element identified by the diagnostic mission was to develop a broader strategy for change that 
is effective and bold, yet practical and feasible. Such a strategy should provide a framework for various efforts 
to shift to results-based system for the use of public expenditures as well as serve to stimulate and guide 
additional initiatives. There was no single answer for what constitutes the best strategy. Rather the leadership 
team was to develop a strategy that reflects the constraints and opportunities in Egypt at that time and start the 
process of change. 
According to the WB mission the characteristics of a successful strategy should be: (i) clear about its objectives; 
(ii) simple and easy to communicate; (iii) successful in enhancing the government’s efficiency and 
effectiveness; (iv) responsive to the real needs of citizens as they interact with their government; and (v) turned 
into actions what would boost government
’s
performance and enhance resource efficiency. 
3.5 Pockets of Innovation 
At the conclusion of the diagnostic study in 2001, the team had identified seven centers of excellence within the 
government. Those centers were affiliated to the Cabinet, Ministry of Finance, Ministry of Health and 
Population, Ministry of Petroleum, Ministry of Electricity, and an educational research institution from the 
government mantle. 
The team found that the efforts exerted within those centers were on a case-by-case basis without any intra-
organizational collaboration as there were no explicit incentives encouraging information and knowledge 
transfer across organizational boundaries. 

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