Arab Finance: The Cabinet, chaired by Prime Minister Mostafa Madbouly, has approved a draft resolution introducing measures to rationalize public spending across state entities covered in the fiscal year (FY) 2026/2027 general budget, according to a statement.
The resolution requires government entities to cut electricity and lighting usage by 20% compared with the average actual consumption recorded during FY2025/2026. They must also reduce fuel utilization by government vehicles by at least 30%.
However, these spending restrictions must not affect the concerned entities' ability to provide services or carry out their mandated functions. It also prohibits expenditure from credit balances for purposes other than those for which they were allocated.
The measures shall remain in force for three months from the date the resolution takes effect, with the possibility of extending them if needed.
Meanwhile, the implementation of national projects with high fuel consumption, particularly those relying on diesel, mazut, and gasoline, will be postponed for at least three months.
The regulations will not apply to the Ministry of Health and Population and its affiliated entities, university hospitals, other healthcare and medical service providers, or expenditures related to national security.
Regarding investments in non-financial assets, the government called for holding off on projects newly added to the current FY’s plan. It prohibits entering into contracts for these ventures, whether through direct agreements or public tenders, until June 30, 2027, except for contracts finalized before the decision's issuance.
Furthermore, government entities will be banned from launching new projects during FY2026/2027, with priority instead given to completing ongoing schemes nearing completion and expected to be finalized within the FY.
The draft resolution also disallows contracting for the purchase of passenger vehicles until June 30, 2027. In addition, it prohibits entering into agreements that would require foreign-currency procurement.
