Egypt approves spending cuts amid regional economic pressures

The Egyptian government has approved a set of public spending restrictions aimed at reducing expenditures and managing the economic impact of regional tensions.

Cabinet officials stated the measures include a 20 percent cut in electricity and lighting use across government institutions and a minimum 30 percent reduction in fuel consumption for government vehicles.

The government ordered the postponement of fuel-intensive projects for at least three months, with a review planned based on regional developments.

Budget allocations for the procurement of goods and services will have at least 20 percent frozen, and spending on advertising, events, and conferences requires prior authorization.

The purchase of new passenger vehicles by government entities has been suspended until June 30, 2027, and recently approved investment projects are to be deferred.

Priority will be given to completing essential projects in healthcare, education, national security, water, food, and energy, as well as those under the Hayah Karima initiative.

Government institutions are instructed to limit overseas travel to cases of absolute necessity, and all foreign currency expenditures require approval from the Ministry of Finance and Central Bank.

The austerity measures will be in effect for three months, with potential for extension based on economic and regional conditions.

The Cabinet noted that essential services to citizens will not be affected, with exemptions including healthcare, national security, pensions, and social protection programs.