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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.

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