Prime Minister Mostafa Madbouly chaired a meeting on Monday with Finance Minister Ahmed Kouchouk and Planning and Economic Development Minister Ahmed Rostom to review a proposed framework for rationalising government spending and safeguarding fiscal sustainability in light of the economic repercussions of ongoing regional tensions.
Madbouly said the government is operating with flexible mechanisms to deal with different scenarios arising from escalating developments in the region, stressing that a co-ordinated plan is being prepared by the Ministries of Finance and Planning to create fiscal space and contain potential impacts on the economy.
The Prime Minister explained that the proposed measures include reducing government consumption of fuel and electricity, while maintaining priority support for production, manufacturing and export-oriented activities.
During the meeting, officials reviewed a comprehensive proposal for expenditure rationalisation across various sectors, aimed at maximising the efficiency of public resource utilisation amid the adverse effects of regional developments.
The discussions also highlighted close co-ordination between the Finance and Planning ministries on a broader framework to ensure fiscal sustainability through proactive measures designed to mitigate future crises. The plan will be presented to the Cabinet in its final form.
Officials stressed that the proposed measures will safeguard the continuity of economic and productive activities, while ensuring the availability of financial allocations needed to secure strategic commodities, meet the requirements of the petroleum and electricity sectors, and maintain essential public services for citizens.
