Prime Minister Announces Five Guidelines to Reduce Government Spending

Egypt’s Prime Minister, Dr. Mostafa Madbouly, has announced five new guidelines aimed at reducing government spending and rationalizing investment expenditure in entities included in the general state budget and public economic bodies:

1- Reduction of financing from the public treasury in the investment plan for the fiscal year 2023/2024, with exceptions for entities with an availability rate exceeding 50%.

2- Postponement of the implementation of newly included projects in the national investment plan during 2023 and 2024. Contracts for these projects, whether through direct orders or public tenders, are prohibited until June 30th, 2024.

3- Halting contracting for the purchase of passenger cars until June 30, 2024.

4- In the current fiscal year, the commencement of new projects is suspended. Emphasis is placed on prioritizing the finalization of projects that are approaching completion and have achieved a 70% or higher implementation status.

5- Refraining from contracting for any external financing or initiating any project that involves a loan or additional foreign component.