Egypt implements three-month government spending austerity measures

The Egyptian government has announced a three-month period of austerity measures aimed at rationalizing public spending and creating a financial buffer to address potential regional developments. According to Cabinet Spokesperson Mohamed Adel, the decision applies to all entities within the state budget, including the administrative apparatus, local administration units, and various service and economic public authorities.

Key measures include a 20% reduction in electricity and lighting consumption within government headquarters and a minimum 30% reduction in fuel consumption for government vehicles compared to the previous year. Additionally, the government has prohibited the purchase of new passenger cars for government agencies until the end of the 2026/2027 fiscal year and has suspended the start of new infrastructure, road, and bridge projects for the current fiscal year, prioritizing the completion of existing ones.

Certain sectors are exempt from these restrictions, including health, education, drinking water, sanitation, and projects related to water, food, and energy security. The presidential initiative ‘Decent Life’ (Hayah Karima) is also exempt, as are pensions, food subsidy allocations, and specific payments for workers in remote areas.