20% Power, 30% Fuel Cuts

Egypt’s Cabinet, chaired by Mostafa Madbouly, approved a plan to rationalize government spending during the 2026/2027 fiscal year. The plan will remain in effect for three months, with the possibility of extension. It calls for cutting electricity consumption and lighting by 20%, and fuel allocated to government vehicles by at least 30%, compared with levels during the same period of the previous year. The measures include postponing nonessential expenditures; restricting travel and spending on certain services; freezing at least 20% of appropriations for purchasing goods and services; slowing fuel-intensive national projects; postponing new investment projects; and prohibiting contracts for passenger cars until June 30, 2027. The decision exempts certain sectors and areas of spending, including health, national security, wages, pensions and food subsidies. The austerity measures must not affect the provision of public services.

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