The Finance Minister has announced the government will reduce the 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 a 30% pay cut as well as a 50% cut in fuel coupons until further notice, the Finance Minister announced.

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 an 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 the 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.

– IPP charges to be reviewed to reduce excess capacity payments by 20% to make savings of GHc 5 billion
– Moratorium on the 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
– Ministers and Heads of SOEs to take salary cut of 30% from April to December 2022.

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