{"id":614415,"date":"2024-02-01T00:00:00","date_gmt":"2024-02-01T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/02\/01\/cabinet-slashes-government-spending-some-more\/"},"modified":"2024-02-01T00:00:00","modified_gmt":"2024-02-01T00:00:00","slug":"cabinet-slashes-government-spending-some-more","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/02\/01\/cabinet-slashes-government-spending-some-more\/","title":{"rendered":"Cabinet slashes government spending some more"},"content":{"rendered":"

Ministers had a busy cabinet meeting yesterday:<\/strong> The Madbouly cabinet yesterday greenlit a raft of decisions in their weekly meeting<\/a>. Among the most notable are:<\/p>\n

#1- Slashing public spending:<\/strong> Ministers approved a decision slashing allocations for investment in fiscal year 2023-2024, extending a series of cutbacks to government spending<\/a> that initially targeted non-essential projects and spending that placed demand on foreign currency. <\/p>\n

The details: <\/strong>The decision will cut funds allocated for investment in the current fiscal year\u2019s budget by 15% and push back any new projects until 30 June 2024 \u2014 that means not launching any new tenders or inking new contracts until then. Additionally, the law prohibits state entities from inking any external financing agreements or start working on any projects that will require FX spending.<\/p>\n

The exception: <\/strong>The decision would exempt any investment project specifically approved by cabinet. The government will prioritize \u201cnecessary investments\u201d and projects that are over 70% completed. <\/p>\n

#2- A law scrapping tax breaks for state companies is getting exec regs: <\/strong>The cabinet greenlit the executive regulations for the law scrapping tax exemptions previously granted to state entities and public-sector companies and projects. The bill cancles long-criticized preferential treatment that tipped off the competition balance between public and private sectors and aims to level the playing field for investors. The law was approved by the House back in July.<\/p>\n

** We dive into the ins and outs of the law in <\/strong>our coverage last year<\/a><\/strong>.<\/strong><\/p>\n

#3- Another golden license granted: <\/strong>Hassan Allam for Strategic Warehouses in Luxor \u2014 the newly established logistics arm of Hassan Allam Holding \u2014 has been handed a golden license to build, operate, and maintain an EGP 1.5 bn warehouses complex in Luxor. The Hassan Allam subsidiary was the first to use the golden license e-platform when it launched in November<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Hassan Allam Holding\u2019s logistic arm receives golden license<\/p>\n","protected":false},"author":1,"featured_media":614416,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7306],"tags":[282,104,72,125],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-614415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cabinet-watch","tag-cabinet-watch","tag-economy","tag-enterpriseam","tag-investment-watch","wpautop","entry"],"acf":{"mongo_id":"8ddd50c4-3b2e-4790-9301-889b1e232ccc","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/7\/170.jpg","photo_position":"above","homepage_title":"","full_issue_title":"The Egyptian government slashes public investments until July","related_issue":[614407],"teaser":"Hassan Allam Holding\u2019s logistic arm receives golden license","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/2\/.8317c836-1d2f-47a7-b5e1-e3cf4017aa7d.mp3"},"yoast_head":"\nCabinet slashes government spending some more - 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Ministers approved a decision by Prime Minister Moustafa Madbouly to rationalize spending for the remainder of the current fiscal year, cabinet said in a statement Thursday following its weekly meeting. 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