The Egyptian government has approved a decision to cut public spending and halted funding for non-urgent projects amid the economic consequences of the Middle East crisis, cabinet spokesman Mohamed Adel said.
“The measures to cut public spending are aimed at creating a financial reserve to address the potential impact of the crisis in the coming months, as well as reallocating budget funds to increase spending on socially important sectors such as education and healthcare,” the Al-Shorouk newspaper quoted him as saying.
The government will also limit fuel consumption for state vehicles by 30%. In addition, electricity consumption by government agencies will be reduced by 20%. A freeze on at least 20% of the remaining public procurement spending is also planned. Egyptian officials will also face restrictions on travel expenses, conferences, official receptions and advertising campaigns, and will be prohibited from purchasing vehicles with public funds. The authorities will also halt major projects that require significant amounts of fuel.
The measures are intended to remain in place for three months and may be extended. However, projects in healthcare, education, water supply and food security will continue.