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2023 Budget: Gov’t announces 13 directives to slash expenditure

Government has frozen fresh appointments to the public and civil service.

Government also intends to register all cross-country vehicles, particularly land cruisers and other V8s and it has also decided to slash fuel allocations to all Ministries, Departments and Agencies as well as district assemblies, by 50% as part of new measures to cut down expenditure.

Finance Minister, Ken Ofori Atta who announced this in the 2023 Budget statement said aside these, foreign trips will be limited for appointees while government sponsored external training of staff has been suspended until further notice.

The disclosure by the Finance Minister, comes as he publicly admits before Parliament that Ghana’s economy is now on life support.
Analysts had expected government to drastically reduce the size of his appointees and suspend or review some flagship programs but that was not captured in the statement delivered today.

Find below the list of 13 measures intended to cut down expenditure.
• 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, 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 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 2023 Financial year.

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