Cabinet approves savings

The Cabinet, chaired by Mostafa Madbouly, approved a draft decision to rationalize public spending by government entities and economic authorities during fiscal year 2026/2027. The measures will apply for three months, with the possibility of extension, to address the impact of regional developments, while ensuring that services provided to the public are not affected. The decision requires a 20% reduction in electricity consumption and a reduction of at least 30% in fuel allocated to government vehicles. It also calls for postponing nonessential expenses, curbing travel, and slowing fuel-intensive national projects for at least three months. At least 20% of appropriations for certain spending items will be frozen, and the launch of new projects and contracts to purchase vehicles will be prohibited until June 30, 2027. Essential sectors and services—including health and national security—as well as allocations for pensions, subsidies, and ration-card goods are exempt. Entities must inform the Ministry of Finance of the amounts they will freeze.

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