Ghana: Government Would Not Embark On New Projects to Reduce Expenditure – Finance Minister
Government would not embark on new projects but would continue ongoing projects as part of measures to cut fiscal expenditure this year to restore the economy to normalcy.
The Minister for Finance, Mr. Ken Ofori Atta disclosed this at a press briefing on the state of the economy in Accra.
Globally, many economies including that of Ghana have suffered a setback as a result of Covid-19 pandemic and the Russia-Ukraine war.
He said the freeze on the new public projects was expected to decrease government expenditure and make money available for a more present public need.
He said government was also in talks with Ministries, Departments and Agencies to review their spending for the remaining three quarters of the year “to achieve the discretionary expenditure cuts”.
“This will affect all new orders, especially 4-wheel drives. We will ensure that the overall effect is to reduce total vehicle purchases by the public sector by at least 50 percent for the period”, he added.
He said it was time for public office holders to make efficient use of energy resources.
“In line with this, there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective 1st April 2022,” he said.
He said government would also eliminate ‘ghost’ workers from the government payroll to save the public purse.
“Other measures to generate revenue for the government is by eliminating ‘ghost’ workers from the Government payroll by end of December, 2022”, he emphasized.