Restraint shields economy

Ayman Mohseb, deputy head of the House of Representatives’ Economic Affairs Committee, said that rationalizing government spending in fiscal year 2026/2027 is necessary to address the effects of regional developments on energy markets, supply chains and import costs, and to protect the budget and foreign-currency resources. The decision includes reducing government entities’ electricity consumption by 20% and vehicle-fuel consumption by at least 30%, freezing some budget allocations and postponing new contracts and projects. It also prioritizes completing existing projects and protecting the health, education, food and water security, energy, and infrastructure sectors. Mohseb emphasized that allocations for healthcare and treatment, food subsidies, and Takaful and Karama benefits would be exempt. He noted that applying the measures for three months would allow them to be evaluated, and that their success would depend on generating financial savings without harming services, investment, or operations.

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