Government has announced a 50% cut in fuel allocations to all political appointees and heads of MDAs, MMDAs, and SOEs.

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 economic 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 systems, 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 travel).

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 the government, including SOEs, shall be allowed," he added.

These directives come at a time when the country has been plunged into an economic crisis.

Amidst the crisis, there have been calls for 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, the government initially announced a 30% slash in the salaries of some of its appointees. Subsequently, it has announced a 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 fuel prices continue to surge, making life unbearable for the average Ghanaian.

Nonetheless, the 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