Egypt reduces public investments for FY2023/24 by 15 percent

Ahram Online , Wednesday 31 Jan 2024

The Egyptian Cabinet approved a plan to reduce the state budget public investment plan for the fiscal year (FY)2023/2024 by 15 percent, according to a statement on Wednesday.

Egyptian Cabinet meeting.
Egyptian Cabinet meeting.

 

The Cabinet also decided to postpone working on new projects until the end of June 2024 by prohibiting entering into contracts for these projects, whether through tenders or no-bid contracts.

However, the new measures include prioritizing completing projects -- scheduled in the FY2023/2024 plan -- with completion rates of at least 70 percent.

The measures prohibit contracting any external financing or entering into projects that require borrowing.

The decision includes suspending buying new passenger cars [for government bodies] until that date.

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

These measures aim to enhance the efficiency of government spending and address the economic challenges faced by Egypt.

Despite the increase, the Egyptian government aims to manage the deficit and expects it to remain at 6.9 percent of the GDP for the current fiscal year, demonstrating a commitment to fiscal stability.

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