Egypt has managed to preserve macroeconomic stability in the period following the revolution, but a broad-based recovery of the economy has yet to set in. Growth has been held back by political and policy uncertainty, security problems, and the global slowdown. Moreover, financial distortions have risen owing to a decline in international reserves  and an increase in each of the fiscal (internal) deficit and the current account (external) deficit. Therefore, this research tends to analyze the relationship between budget deficit and the current account deficit.