Government has announced a ban on employment for civil servants effective January 2023.

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This was contained in the 2023 budget statement and economic policy read in Parliament on November 24, 2022.

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According to the Finance Minister, Ken Ofori-Atta, this is part of measures to ensure fiscal discipline amidst the current economic crisis.

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Speaking in Parliament, the Minister also announced a “reduction of expenditure on appointments, including salary freezes together with suspension of certain allowances like housing, utilities, and clothing,” among others.

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“As far as possible, meetings, and workshops should be done within the official environment or government facilities,” Mr Ofori-Atta added.

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Additionally, government sponsored external training and staff development activities at the Office of the President, Ministries, and SOEs will be put on hold for the 2023 financial year.

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No new government agencies shall be established in 2023.

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Government has also announced no hampers (during the festive season) for government workers this year.

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“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 2023 Financial year,” the Minister directed all MDAs, MMDAs and SOEs.

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Further, the Minister announced an increase in the VAT rate by 2.5 percent to directly support our roads and digitalization agenda as part of measures "toward expenditure rationalisation."

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Government also intends to cut the imports of public sector institutions that rely on imports either for inputs or consumption by 50% and will work with the Ghana Audit Service and the Internal Audit Agency to ensure compliance; support the aggressive production of strategic substitutes, including the list disclosed at the President’s last address to the nation; support large-scale agriculture and agribusinesses interventions through the Development Bank Ghana and ADB Bank; introduce policies for the protection and incubation of newly formed domestic industries to allow them to make the goods produced here competitive for local consumption and also for exports.

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Source: The Independent Ghana

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