The Clap
The government decided to cut the funds allocated for new state investments.
What
The cabinet announced through an official statement on Wednesday that the investment budget will be cut by 15% in the fiscal year 2023/2024 – and will postpone new state projects until June 30, 2024.
So What
Governmental entities won’t be allowed to make any external financing agreements or initiatives that require FX.
And projects deemed essential or those that are 70% or more complete will be prioritized.
Some Context
Due to the FX shortage, the government plans to cut FX spending and bolster FX-generating sources such as exports, tourism, the Suez Canal, remittances from Egyptians living abroad, and foreign direct investments.
