Egypt's Gov. to Reduce Public Investments Budget

The Egyptian Cabinet has approved a plan to reduce the public investments budget for the fiscal year 2023/2024 by 15%.

The plan aims to improve the efficiency of government spending and address the economic challenges faced by Egypt during this critical time.

The Cabinet has also decided to delay working on new projects until the end of June 2024 by prohibiting contracts for these projects. Whether through tenders or no-bid contracts, the new measures will prioritize completing the projects scheduled in the FY2023/2024 plan with completion rates of at least 70%.

Furthermore, the measures prohibit contracting any external financing or entering into projects that require borrowing. The decision also includes the suspension of purchasing new passenger cars for government bodies until that date.

The rationalization of public spending is an essential component of the International Monetary Fund's $3 billion loan agreement with the country.