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
