Madbouly declares social support measures, spending curbs amid regional tensions
Updated 3/10/2026 11:07:00 AM
Arab Finance: Prime Minister Mostafa Madbouly announced a package of social and economic measures to stabilize Egypt's economy and the interests of its citizens amid escalating tension in the region, according to a statement.
The government plans to rationalize public spending in the state budget and public economic authorities to maximize the efficiency of public resource utilization.
Hence, the issued decree includes reprioritizing public spending, postponing non-urgent expenditures, and reducing travel, conferences, events, and advertising expenses.
It also sets controls on investment spending and focuses on finishing projects nearing completion.
The government will coordinate with the Central Bank of Egypt (CBE) to bolster foreign currency reserves.
This includes engaging with international financial institutions to expedite certain scheduled funding tranches, expanding the government's privatization program in the coming months, and attracting foreign direct investment.
In the same vein, the government will immediately begin applying President Abdel Fattah El-Sisi's directive to study the possibility of referring price manipulators to military courts.
This measure aims to end the exploitation of the current exceptional circumstances to raise or manipulate prices.
The state also extended social protection programs targeting families in need and beneficiaries of the Takaful and Karama initiative for an additional two months.
Furthermore, the government plans to announce an early package of salary and income enhancements for public sector employees, effective from the fiscal year (FY) 2026/2027.
This package will include raising the minimum wage to cope with the global economic challenges and support the state's commitment to boosting the purchasing power of public sector employees.
As for the financial reforms, the cabinet finalized the second package of tax incentives, fully implementing the recently approved real estate tax incentives, and working to reduce customs clearance times and burdens.
Finally, the government asserted that these measures are part of a temporary approach to face exceptional circumstances currently affecting global energy markets.
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