• The resources of the special funds isare re-directed to support other budget deficits rather than being employed to serve the actual cause of its establishmentestablishment.
• There is no proper legal and regulative framework for special funds in Egypt
• Special funds do not comply with accountability requirements and transparent budget preparation process
• There is no governance framework that identifies responsibility and independence of the boards as well as accountability measures and transparency
• There is an accumulative financial responsibilitiesaccumulative financial responsibility on many special funds that altered its scope and direction and overlapped with government responsibilitiesresponsibilities.

Policy Recommendations for Special Funds’ Policy Reforms: 

• Creating policy and technical tools to avoid establishing new special funds away from the state budget to ensure the efficiency of the state budget structure. 
• Amending the laws and regulations to ensure the ratification of financial bylaws as a requirement for the existence of any special funds. Additionally, the parliament should ensure any exceptional privilege for any special fund
• Modernization of the financial administration of special funds and listing specific KPIs to ensure accountable revenues and expenditure schemes with internal and external auditing process
• Ensuring transparency in all collected fees by special funds. The investor should know clearly in advance all the required money that he will pay.
• Ending all sorts of exceptions as no fund should be excluded from the state budget. 
• Reforming the state budget to be more flexible so there is no demand for special funds 
• The Ministry of Finance in cooperation with the General Authority for Organization and Administration should create comprehensive database with all workers and beneficiaries of all special funds in order to deal with any unfair grievances. 
• Putting KPIs for employment in special funds and either to freeze hiring new personal or limiting salary amounts in the budget to 20-25%