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Gov’t Appointees to Contribute 30% of Salaries

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The government has committed to further spending cuts amid the rising cost of living and growing sense of economic hardship.

These new measures will be in addition to the ongoing 20 percent expenditure cut as part of fiscal stabilization and debt sustainability measures.

Members of the Council of State also voluntarily cut their monthly allowances by 20 percent till the end of 2022.

The government has said these moves are aimed at ensuring the 7.4% deficit target set in the 2022 budget is met.

In addition, the Ministry of Finance has said it has strengthened its Expenditure Monitoring systems and processes to ensure effective implementation of these measures.

Find below the new measures announced by the government

  1. The government plans to cut discretionary spending by an additional 10 percent. The Ministry of Finance is meeting with Ministries, Departments and Agencies to review spending plans for the rest of the year.
  2. There will be a 50  percent cut in fuel coupon allocation for all political appointees and heads of government institutions to ensure efficient use of energy resources. This measure is effective April 1, 2022. Fuel coupons normally account for over GHS 60 million, according to the Finance Minister.
  3. The suspension of the purchase of imported vehicles for 2022 to reduce total vehicle purchases for the year. This will affect all new orders, especially Four-wheel drives.
  4. The suspension of all foreign travels except pre-approved statutory travels or critical travels.
  5. The government plans to conclude measures to eliminate ghost workers from the government payroll by the end of 2022.
  6. The government hopes to conclude renegotiations of the Independent Power Producer capacity charges by the end of the third quarter of 2022 to further reduce capacity payments by 20 percent to generate total savings of GHS1.5 billion.
  7. Moratorium on the establishment of new public sector institutions by the end of April 2022
  8. Prioritise ongoing projects over new projects to enhance the efficient use of limited public funds by finishing ongoing or stalled projects
  9. The reduction of expenditure on all meetings and conferences by 50 percent.
  10. Pursue reprofiling strategies to reduce the interest expense burden on the fiscal.
  11. The government also plans to liaise with organised labour to implement measures in the Kwahu declaration of the 2022 National Labour Conference. These include reforms towards addressing salary inequities.
  12. Ministers and the heads of SOEs will also be contributing 30 percent of their salaries from April to December 2022 to the Consolidated Fund.

Source: Citi News

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