Egypt reduces state investments to rationalize spending for FY2023/2024

CAIRO – 1 February 2024: The Egyptian Cabinet approved a decision regarding rationalizing investment spending under the state budget public investment plan for FY2023/2024 by 15 percent.

According to the decision, there is a postponement in working on new projects, in addition to a prohibition on entering into any new contracts, whether through direct orders or public tenders, until June 30, 2024.

To ensure effective utilization of government funds and address economic challenges in Egypt, the government will prioritize the completion of projects for the fiscal year 2023/2024 that have achieved a completion rate of 70 percent or higher.

Additionally, the government will prohibit obtaining external financing or undertaking projects that require borrowing.

Any exceptions to these measures must be approved by the prime minister.

These actions aim to maximize the efficient use of government resources and overcome Egypt's economic hurdles.

Recently, Minister of Finance, Mohamed Maait, highlighted the most important financial results for the first half of the fiscal year 2023/2024 (FY2023/2024). Egypt achieved a primary surplus of LE 150 billion.

Maait noted that the general budget achieved a total deficit of 4.95 percent of the gross domestic product during the period between July and December 2023.