The government in its 2023 budget announced its first step toward expenditure rationalization and economic recovery.
Per the 2023 budget statement dubbed ‘NKABOM’, effective 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 year's (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOEs".
Apart from that, a ban has been placed on the use of V8s/V6s or its equivalent except for cross-country travel.
However, these measures won't be enough to pull the country out of its current economic woes, according to Professor Godfred Alufar Bokpin, a Financial Economist at the University of Ghana (UG).
Speaking in an interview on Peace FM's morning show 'Kokrokoo', Prof Bokpin said, "the market is looking for certain things; it is not just salary cuts or fuel allowance no". Rather "we need to reduce the number of ministers . . . merge some ministries; that’s more effective".
"In the last 15 years, we’ve created so many agencies and institutions doing the same thing. Some of them are not doing anything but annually they are receiving budgetary allocation and that is not a growth-friendly spending," he averred.
Even though Prof Bokpin believes there's hope, he has asked Ghanaians to brace themselves for more hard times to come.
"The reality is there and Ghana needs to take certain hard decisions. The starting point is to be truthful to ourselves and be driven by data . . . we cannot pretend about this," he added.
Source: Rebecca Addo Tetteh/Peacefmonline.com/[email protected]
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@Isaac , sorry I don't think the Professor went overboard. The problem we have in the country also stems from the size of the government. When this issue came up in the early stages of this administration , the president came to say the results will justify the size . But we can all see the results is not that great. The size of the government has to be cut down to below 45 ministers and deputies. 16 regional ministers without deputies, 19 cabinet ministers plus just 10 more for deputy roles. Not all ministry needs a deputy. Cutting the size in addition to what has been announced will send a better signal. For example Agric and fisheries must be merged. Interior and national security must be merged. roads, transport and aviation must be one. Education and sports can be one. Health , water and sanitation can be merged. Works, housing and employment can be one. We don't need a defence minister. The CDS can play that role perfectly Also budgetary allocation to the seat of presidency must be slashed down by 40% . We have to invest more in growth oriented areas to develop . Not just trying to satisfy cronies and apparatchiks.
Sorry Godfried, the measures taken by the government are part of the solution, so don't double down these measures. While I agree that making institutions efficient is also part of the solution, it takes time to do it, i.e., it is long term solution which future governments will need to do too. We are all economists too, but sometimes your prescriptions are overboard and cannot work practically given Ghanaians' attitudes to work. Look at TUC asking for pay rise of 60% without talking about labour productivity and corruption/bribe-taking among its members for the job they are paid to do. Don't see everything/problem as something the government of Ghana alone can fix or solve. Some of the solutions must come from our institutions, including Universities providing curriculum necessary to reduce corruption and reinforcing ethical behaviors of students (future leaders) we train. The cut must come from the institutions and agencies who waste resources just to enrich themselves
Well said, ministry of fisheries should go back to agriculture, sanitation and water resources back to ministry of works and housing, planing back to finance, public sector reforms can be a secretariat under a ministry, transport back to roads and highways. So five ministers and their deputies (if any) are not necessary .