The government has cut by a further 10 per cent the expenditure of Ministries Departments and Agencies (MDAs) as part of a raft of measures to ensure fiscal consolidation of the Ghanaian economy and set the economy back to its pre-COVID-19 levels. This brings to 30 per cent the cut in the expenditure of all MDAs in the country.
Minister of Finance, Ken Ofori-Atta who made the announcement during a press conference in Accra on Thursday, March 24, 2022, said the expenditure cut has become necessary to help government align spending to revenue mobilization by reducing cost and pruning expenditure to hasten the country’s recovery from the COVID-19 pandemic.
“Discretionary spending is to be further cut by an additional 10%. The Ministry of Finance is currently meeting with MDAs to review their spending plans for the rest of the three (3) quarters to achieve the expenditure cuts,” the Minister said.
According to Mr. Ofori-Atta, this is among other important measures by the government to revive the Ghanaian economy and set it back in motion stressing that the cut will help regain investor confidence in the economy.
Additionally, the Minister also announced a 50% cut in fuel coupon allocations for all political appointees and heads of government institutions, including State-Owned Enterprises (SOEs), effective 1st April 2022 to ensure the efficient use of energy resources.
He said government has also imposed a complete moratorium on the purchase of imported vehicles for the rest of the year. This will affect all new orders, including 4-wheel drives. Note that, while this order will not affect vehicles manufactured or assembled in Ghana, the overall effect is to reduce total vehicle purchases by the public sector by at least 50 percent for the period.
The Minister also announced with immediate effect the imposition of a moratorium on all foreign travels, except pre-approved critical and statutory travels. This he said will help government implement austerity measures to tackle the economic challenges.
Source: Mypublisher24.com
