The survey results were showcased during a high-level event hosted by the Middle East Regional Technical Assistance Center (METAC) to celebrate its 20th anniversary.

The event, held in Egypt, brought together top officials from the country, the International Monetary Fund (IMF), the World Bank, the United Nations, and other key institutions.

The survey was conducted by the International Budget Partnership (IBP); a nonprofit organization co-founded by the European Union. It is specialized in promoting more responsible, effective, and equitable management of public money. 

Egypt’s Ministry of Finance is collaborating with the IBP to draft and prepare the citizen budget, aiming to enhance public spending efficiency.

Despite coming second, Egypt attained a score of 49 on the OBS, surpassing the global average of 45, according to the survey results.

As per the survey, Egypt came in first place in the region for public participation in the budget with a total score of 35, significantly higher than the global average of 15.

Egypt also secured first place across the region for budget-related legislative oversight, with a score of 42, while ranked second after Iraq for audit oversight.

Budget Challenges

Emad Emam, Senior Programme Officer at the IBP, highlighted six key challenges hindering budget drafting and preparation in the region during the event.

Such challenges include limited opportunities for citizen engagement in budget decisions, both locally and nationally, he noted, adding that budgets, accordingly, often fail to reflect the public's demands for services, rights, and priorities.

The challenges also involve the lack of legal framework for local; governance and decentralization in some countries of the region that can allow citizens to engage in budget decisions, according to Emam.

He also added that there is a shrinking of civic space and few formal opportunities for civil society organisations' engagement.

Emam also emphasized the impact of political instability and conflict in certain countries. These factors, he noted, can disrupt existing budgeting processes, divert resources away from essential services and rights, and create budgetary volatility.

One of the challenges in this respect, according to Emam, is the rising foreign debt and currency devaluation, alongside soaring inflation, which all have exacerbated poverty, leaving the population struggling to afford necessities.

During the event, Sara Eid, the head of the Transparency and Citizen Engagement Unit at the Egyptian Ministry of Finance, showcased Egypt’s citizen budget and how it has contributed to prioritising public spending.

Corruption& Growth

For his part, Joel Turkewitz, the Deputy Chief of the Governance and Anti-Corruption Division at the IMF’s Legal Department, noted that corruption can have a profoundly detrimental effect on public finances as governments collect less in tax revenues and overpay for goods and services or investment projects.

In this respect, Turkewitz explained that the least corrupt countries collect four percent of GDP more in tax revenues than countries with the highest levels of corruption.

He added that corruption discourages financial development and inclusion, as corrupt countries tend to have lower deposits from the public and less credit to the private sector.

He also noted that corruption weakens financial oversight and stability and undermines the recovery of debts.