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Egypt is preparing a coordinated framework to control government expenditure and strengthen the resilience of public finances as regional tensions create additional economic pressures.

Prime Minister Mostafa Madbouly discussed the proposed measures during a meeting with Finance Minister Ahmed Kouchouk, Planning and Economic Development Minister Ahmed Rostom, Deputy Finance Minister for Financial Policies Yasser Sobhi and officials from both ministries.

Madbouly said the government was working on flexible responses to different potential scenarios, with the aim of creating additional fiscal space to manage the consequences of the regional situation.

Spending Measures to Focus on Energy and Administrative Costs

The proposed framework includes reducing government consumption of fuel and electricity, extending measures that were previously adopted following the outbreak of the crisis.

It also calls for prioritising production, manufacturing and export activity, while reviewing government spending on advertising and promotional campaigns.

The approach is designed to improve the allocation of public resources and identify areas where expenditure can be reduced without disrupting key economic activities.

A Coordinated Framework for Public Finance

The Finance and Planning and Economic Development Ministries are working together on a detailed proposal covering expenditure areas across different government sectors.

Officials confirmed that the final framework will be presented to the Cabinet after its preparation is completed.

Beyond immediate spending controls, the proposal is intended to establish a broader public finance sustainability plan. It will include advance measures to prepare for potential crises and provide a framework for implementation across state entities.

Protecting Essential Supply and Services

Despite the planned spending controls, the government emphasised that funding for essential priorities would remain available.

These include securing strategic commodities for citizens for adequate periods, meeting the requirements of the petroleum and electricity sectors, and maintaining the financial resources needed to ensure the continuity and stability of essential public services.

The framework therefore seeks to combine tighter government spending with continued support for production, economic activity and the services on which citizens depend.