Egypt Cabinet Backs Draft 30% Fuel Cut and Freeze on New Project Awards

Egypt's cabinet has approved a draft public-spending restraint decree that would cut fuel use by government vehicles by at least 30%, reduce electricity and lighting consumption by 20%, and delay certain new investment contracts until June 30, 2027. The decision was announced on Thursday, November 5, amid fiscal pressures linked to the regional crisis.

The cabinet approved a proposed decree. This is not evidence that all measures have entered into force or that consumption reductions have been achieved. The controls are intended to last three months from the effective date, with a possible extension.

State-budget entities and public economic authorities would have to reduce electricity and lighting consumption by 20% compared with the corresponding period in fiscal 2025/26. Government-vehicle fuel consumption would fall by at least 30%. National projects using substantial quantities of fuel would be postponed or slowed for at least three months, subject to review.

The draft would freeze at least 20% of remaining allocations for goods and services, in addition to restrictions on nonessential publicity, receptions, conferences and travel. Newly budgeted investment projects could not receive new contracts through June 30, 2027, unless the contract had been signed before the decree was issued. Purchases of government passenger vehicles would also be barred during that period.

The plan includes important exceptions. Health care and university hospitals, national security, debt payments, social pensions, food subsidies and specified essential education and infrastructure projects would be protected. The government said basic services should continue.

Independent Arabic-language reporting by Al Jazeera and Masrawy sets out the same cabinet proposal and differentiates spending limits from actual expenditures. The information reviewed does not establish the final decree's promulgation date, the amount of money ultimately frozen or the actual savings achieved.

The next verifiable steps are publication of the final legal instrument, detailed agency spending plans, exemptions, cancelled or postponed tender notices, and independently measured electricity and fuel consumption. A budget target should not be described as money already saved.