As part of its efforts to alleviate the country's economic woes, the government has announced that it will halt the creation of new public sector institutions by the end of April 2022.
While speaking to Ghanaians on new measures taken to alleviate present economic problems, Finance Minister Ken Ofori-Atta stated that this is vital for the government to meet its 7.4% deficit target set for 2022.
This new policy will be used in conjunction with other measures to stabilize the country's budgetary resources, such as a 30 percent pay reduction for all Cabinet Ministers and heads of State-Owned Enterprises, which will take effect in April 2022, and a 15 pesewas drop in fuel costs.
He also stated that "ongoing public projects will take precedence over new ones" for the administration. Energy resources must be used very efficiently in these times. As a result, starting February 1, 2022, all political appointees and leaders of government institutions, including SOEs, will receive a 50% reduction in gasoline coupon allocations.
"With immediate effect, the government has imposed a ban on all overseas travel, with the exception of pre-approved critical statutory travel. In addition, the government has cut spending on all meetings and conferences by half, effective immediately," he said.
According to the Minister, the government has also decided to put a stop to government personnel purchasing foreign automobiles for the rest of the year.
The ban on government employees purchasing vehicles "would affect all new orders, particularly four-wheel drives." As part of austerity measures to address the current economic crisis, the government has already declared a 30% drop in spending at the Presidency and a 30% wage cut for its appointees.
Due to the country's economic difficulties, members of the Council of State have also decided to lower their monthly allowances by 20% till the end of the year.
Many Ghanaians have criticized how the rising cost of living has been exacerbated by rising fuel prices, increases in transportation and food expenses, and the devaluing cedi.
However, the Finance Minister has stated that the government will guarantee that the expenditure measures promised are implemented effectively in order to boost the economy.
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