Back to the complete issue
Sunday, 27 March 2022

The search for budget cutbacks starts in April, PM asks us all to drive a bit less

Ministries and government agencies will start looking at ways to trim spending from the beginning of next month as the cabinet tries to get its fiscal house in order amid spiraling international commodity prices and the war in Ukraine. Sources have reportedly told Al Shorouk that Prime Minister Moustafa Madbouly has notified ministers, governors and state officials that in April they will need to review their budgets and cut costs where necessary. This comes a few days after the prime minister warned of potential austerity measures to balance out the increased social spending and rising import costs caused by the conflict in Ukraine,

Reportedly on the chopping block: Any new projects that have not yet been implemented and that require USD-based payments will be postponed and foreign travel for government officials will be prohibited unless absolutely necessary, the sources said.

Prime Minister Moustafa Madbouly reiterated the challenges ahead on Thursday, warning that the surge in oil prices “presents very big pressure on the currency and the state.” Speaking at the opening of the Ahlan Ramadan supermarket expo, the PM called on members of the public to limit their fuel use, noting that the doubling in the price of oil to around USD 120 per barrel means the state is now also paying double for imports at some USD 1 bn per month.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.