The Research aimed to understand the Nature of the Causal Relationship between the General Budget Deficit and the Trade Balance Deficit in Egypt, and to determine which of them Influences or Causes the other. The Study also attempted to identify the most Important Factors Influencing the General Budget Deficit and the Trade Balance Deficit using a Cointegration Model. The Study also determined the Direction of the Causal Relationship between them using Granger Causality using the e-Views Statistical Program. The Research found a Unidirectional Causal Relationship from the General Budget Deficit to the Trade Balance Deficit, not vice Versa. This Relationship is Directly Proportional. The Study also found a long-term, Direct Relationship between the General Budget Deficit and the Trade Balance Deficit in Egypt. Accordingly, the Research Recommended Working to Diversify Public Revenues by Developing the Production base and Focusing on the Agricultural, Tourism, and Service Sectors. Public Spending should be Rationalized or Rreduced, while Public Revenues should be increased. Budget policy should be based on the State's overall Objectives and built on solid Foundations that enable it to withstand any Influences, Whether Internal or External, and Combat tax Evasion, which is considered one of the Main Causes of the Decline in Financial Revenues in Egypt.