No hampers, a ban on use of V8/V6s, reduction in fuel allocations – Govt’s intervention for economic recovery

Government has announced its first step toward expenditure rationalisation.

Finance Minister, Ken Ofori-Atta presenting the 2023 budget statement dubbed ‘NKABOM’, said the 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 system, 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;

● 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, 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 the 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 review of tax exemptions for 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;

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● All non-critical project must be suspended for 2023 Financial year