There are 13 steps to reduce public spending that have been outlined by the government through the Finance Minister, Ken Ofori-Atta.
He claims that these measures are orders from the Cabinet that would start to take effect in January 2023.
This follows several requests from various segments of the public for the government to reduce spending in order to save the economy.
Ghana’s economy is now struggling, which has raised living expenses and caused inflation to soar.
The measures are “a starting step towards expenditure rationalization,” according to Mr. Ofori-Atta, who on Thursday presented the 2023 Budget to the House of Representatives.
Mr Speaker, as a first step toward expenditure rationalisation, Government has approved the following directives which take effect from January 2023:
- All MDAs, MMDAs and SOEs are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit systems, and fuel depots. Accordingly, 50% of the previous year’s (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOES;
- A ban on the use of V8s/V6s or its equivalent except for cross-country travel. All government vehicles would be registered with GV green number plates from January 2023;
- Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, the purchase of new vehicles shall be restricted to locally assembled vehicles;
- Only essential official foreign travel across government including SOEs shall be allowed. No official foreign travel shall be allowed for board members.
Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff;
- As far as possible, meetings and workshops should be done within the official environment or government facilities;
- Government-sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year;
- Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;
- A freeze on new tax waivers for foreign companies and review of tax exemptions for the free zone, mining, oil and gas companies;
- A hiring freeze for civil and public servants
- No new government agencies shall be established in 2023;
- There shall be no hampers for 2022;
- There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024;
- All non-critical projects must be suspended for the 2023 Financial year.