Government has announced its first step toward expenditure rationalisation.
Finance Minister, Ken Ofori-Atta presenting the 2023 budget statement dubbed ‘NKABOM’, said the government has approved the following directives which takes 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 system, and fuel depots. Accordingly, 50% of the previous years (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 project must be suspended for 2023 Financial year
Source: Peacefmonline.com
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This government has disappointed some of us! So when they came on board they couldn't fathom those ***barred word*** things like that printing of diaries and hampers are frivolous and could be done away with? Look at the number of V8 vehicles they have also come to purchase in addition to what the clueless NDC did! It seems the 2 parties are not different from each other. This country is in a mess!
Good move… Use the fuel savings to fuel aayalolo buses for free to cushion Ghanaians small small this Christmas wai in the major cities; Accra, Kumasi, Ho, Tadi, Tamale, Sunyani
A good move by the government. However the finance minister failed to define what he meant by ' non critical projects '. He should come clear. In the first place what informs governments decision to undertake a project in the first place only to later see it as ' non critical '. Assuming some projects awarded earlier are at 70 percent completion level and you now decide to suspend it because it's assumed to be non critical, won't that amount to wastage of public funds? Suspending all new projects and continuing with those already awarded and being worked on should have been the way to go. In the eyes of government a non critical project could be the number one priority of the beneficiaries. On the reduction of the E-levy from 1.5% to 1% and the taken off of the GHC 100.00 levy free threshold, it's like giving something to someone with your right hand and taking it back with the left hand. The minister said government wants to protect the underprivileged and vulnerable, this are the GHC 100. 00 mobile money transfer group. Will you be protecting them if you charge 1% of their GHC 100.00 transfer per day? No. Again some government departments are field departments, their work is in the field thus reducing their fuel budget by 50% could result in their inability to monitor and collect data from the field. They may be compelled to ask their clients to provide them with fuel to enable them work. This can make the government unpopular. Some MDA's should have been considered. If you award a projects to contractors in different parts of a region, how is the government agency responsible for monitoring and supervision of these projects be effective if they don't have enough fuel to move round. But for these few challenges, on the whole the budget is okay. By mid 2023 we would have known whether the measures announced are making the desired impact. In actual fact Ghanaians are suffering. 2022 is not a good year for the people of Ghana.
THIS IS GOOD BUT WE MUST GO FURTHER BY CUTTING THE SIZE OF THE GOVERNMENT TO ONLY 45. 19 CABINENT MINISTERS AS PER THE CONSTITUTION , 16 REGIONAL MINISTERS WITHOUT DEPUTIES AND ONLY 5 MORE TO HELP HEAVY MINISTRIES. SOME PEOPLE EVEN SUGGESTED WE DO AWAY WITH REGIONAL MINISTERS AND RATHER HAVE MAYORS RESPONSIBLE FOR IMPLEMENTING THE DEVELOPMENT AGENDA OF EACH REGION. THIS COULD EVEN RESULT IN CUTTING THE FIGURE DOWN TO ABOUT ONLY 30 MINISTERS. THE COST OF GOVERNANCE IS ONE OF OUR BIGGEST PROBLEM. WE WANT TO GIVE POSITION TO EVERY TOM, ***barred word*** AND HARRY WHO HELPED US TO WIN ELECTIONS INSTEAD OF BEING EFFICIENT.
Solid intervention, government working for the people