Government has announced a 50% cut in fuel allocations to all Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This, according to the Finance Minister, Ken Ofori-Atta, forms part of measures “toward expenditure rationalisation.”
Addressing Parliament while presenting the 2023 budget statement and economy policy on November 24, 2022, the Minister announced that the directive takes effect from January 2023.
“Mr. Speaker, as a first step toward expenditure rationalisation, 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,” he said.
Additionally, measures toward expenditure rationalisation include a ban on the use of V8s and V6s by government officials (except for across country travels).
Government has also announced a limited budgetary allocation for the purchase of vehicles. “For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles,” the Minister said.
“Only essential official foreign travel across government including SOEs shall be allowed,” he added.
These directives comes at a time when the country has been plunged into an economic crisis. Amidst the crisis, there have been calls on the government to cut down on its expenditure. An Associate Professor of Political Science and a former Director of the Centre for European Studies of the University of Ghana, Prof Ransford Gyampo was one of the active voices championing this course.
In line with the calls, government initially announced a 30% slash in the salaries of some of its appointees. Subsequently, it has announced the 50% slash in fuel allocations to all political appointees.
Meanwhile, the prices of goods and services continue to soar. Inflation currently stands at 40.4 % and the fuel prices continue to surge, making life unbearable for the ordinary Ghanaian. Nonetheless, government is confident that the measures outlined in the 2023 Budget will “redirect us on the path of macroeconomic stability and growth.”
Source: The Independent Ghana