Budget Preparation Stages in Egypt

Budget Preparation Stages in Egypt

• The budget process begins with setting general policies and objectives by the Ministry of Finance (MOF).
• This involves creating proposals and recommendations for the next fiscal year's budget.
• The second step is issuing a budget circular.
• Next, draft budgets are issued.
• The final step in the preparation stage is the creation of the draft budget at the state level.

Budget Ratification and Implementation

• The next stage is ratification of the state's general budget.
• This is followed by the implementation stage.
• The final stage involves preparing the final accounts, encompassing the actual outcomes of the implementation.

Budget Process Timeline

• The budget process spans a fiscal year, typically from September/October to June.
• During September/October, the MOF issues circulars.
• By December, ministries submit estimated budgets to the MOF.
• Before March 31st, the executive submits their budget proposals to the legislature.
• By July 1st, the fiscal year starts.
• By June 30th, books are closed and accounts are sent to the Central Audit Agency for finalization.
• By December, audit reports are submitted to the legislature.

Ministry of Finance Responsibilities

• The Ministry of Finance is the primary entity for preparing the general budget.
• It prepares the draft budget and presents it to parliament.
• They are responsible for the final accounts laws.
• Quarterly financial performance reports are issued to monitor progress and performance.
• The Ministry coordinates with the Ministry of Planning for investment budget preparation.

Parliament's Role

• Parliament is mainly responsible for ratifying the draft general budget and making adjustments to financial allocations for various entities.
• Parliament validates financial appropriations for the fiscal year.
• Additionally, they approve the final accounts and follow up on the budget implementation.

Central Audit Agency (CAA) Responsibilities

• The Central Audit Agency is entrusted with examining and auditing the budgets of various entities.
• They produce accounting reports based on the audit results of budget implementation.

Citizen Participation

• The Ministry of Finance promotes citizen participation by raising awareness about government plans and financial policies.
• This participatory budgeting encourages citizens to be partners in sustainable development and decision-making.
• This local level participation leads to a more transparent budget process and increased citizen satisfaction.