List of expenditure cut measures in 2023 budget

Government has introduced a number of expenditure cut measures that will take effect from January 2023.

The Finance Minister, Ken Ofori-Atta, made this known when he appeared before parliament to present the 2023 budget statement.

He said: “Mr. Speaker, as a first step toward expenditure rationalisation, Government has approved the following directives which take effect from January 2023.”

The measures outlined are as follows:

● 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 systems, 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.

● 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, the 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 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 a review of tax exemptions for the 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 projects must be suspended for the 2023 Financial year.

The presentation of the budget in parliament is in pursuance of the Public Financial Management Act, 2016 (Act 921).

This allows the Finance Minister to review the budget statement and economic policy of the government and supplementary estimates for the 2023 financial year.

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