Economic challenges: Ofori-Atta announces salary, fuel coupons cuts, others

The Finance Minister has announced government will reduce purchase of vehicles by the public sector by 50% as part of measures to resolve the current economic challenges in the country.



Also, Ministers and heads of state institutions will also suffer 30% pay cut as well as 50% cut in fuel coupons until further notice, the Finance Minister announced.

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The measures come on the back of the recent cabinet meeting at Peduase.

Already, the council of state has announced its members are taking 30% cut in their monthly allowance to help improve the economy.

Below are details of the measures being taken by the government

– Discretionary expenditure cut by additional 10% for MDAs

– 50% cut in fuel coupon allocation to Political Appointees and heads of government institutions

– Complete Moratorium on imported vehicles for the rest of year(this will affect all new orders for the year) .. Reduce total vehicle purchases by the public sector by 50% for the period..

– Moratorium on all foreign travels except pre-approved critical statutory travels..



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– IPP charges to be reviewed to reduce excess capacity payments by 20% to make savings of GHc 5 billion

– Moratorium on establishment of new state institutions by end of April 2022.

– Prioritize ongoing projects over new projects

– Reduce expenditure on all meetings and conferences by 50% effective immediately

– Pursue a comprehensive Re profiling strategies to reduce the interest expense burden..

– Liaise with organized labour & Employers association to Implement measures in Kwahu Declaration of the 2022 National Labour conference



– FREE SHS NOT TO BE TOUCHED

– Ministers and Heads of SOEs to take salary cut of 30% from April to December 2022.



 

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Source Starrfm.com.gh