Government has, with immediate effect, suspended the granting of approval for post-retirement contract appointments, except in cases where the skills of the retiring officer are in short supply and unavoidably needed. The move, according to Finance Minister, Ken Ofori-Atta, is aimed at containing expenditures and further enhance fiscal sustainability.

Emphasizing its commitment to fiscal sustainability, the government outlined a number of expenditure measures that will be implemented in the 2022 fiscal year and the medium-term. Hon. Ken Ofori-Atta disclosed that Government will continue to safeguard the integrity of the payroll system to ensure that only public sector employees, properly engaged through approved channels, are placed on the Government payroll.

“In furtherance of this, regular payroll audits will be carried out to identify ghost and unapproved workers and expunge their names from the payroll. Those found culpable and implicated in this unpatriotic behaviour will be brought to book and face the full rigour of the applicable PFM laws. The Principal Spending Officers in charge of payroll will also be held liable for any payroll infractions”.
Ken Ofori-Atta

Government continues to spend a chunk of its resources on compensation of employees, some of which remains “ghost names” or people without job descriptions. In 2022, government earmarked a total of GH¢35.8 billion for compensation of employees out of its total expenditures including arrears and amortization of GH¢135.6 billion. In 2021, the revised target for compensation of employees is GH¢31.5 billion. Government’s compensation of employees as a component of government expenditure comprises Wages & Salaries, Social Contributions, Pensions, Gratuities, and Social Security contributions.

Staff Rationalization Exercise

In addition, the government revealed that it will carry out a staff rationalization exercise in 2022 and the medium-term to instill efficiency in the allocation of staff to government institutions with the view to right-sizing the public sector workforce.

“In line with this, there will be a limit on the creation of new institutions with varying conditions of service and attendant costs. Should the need arise for a new institution to be created, staff shall be sourced from existing staff on government payroll, except under exceptional circumstances where the skill set required cannot be found in the public service”.
Ken Ofori-Atta

To this end, Mr. Ofori-Atta assured that the Public Services Commission shall be resourced and strengthened to work with the Office of the Head of Civil Service, Office of the Local Government Service, and other relevant stakeholders to ensure that Government’s objective with respect to this policy is achieved.

Mr. Ofori-Atta further stated that all new projects announced in the 2022 Budget and those included in the Medium-Term Development Plans of MDAs, MMDAs and SOEs shall, irrespective of their funding source, be subjected to the processes outlined in L.I. 2411 to ensure efficiency and effectiveness in the delivery of public infrastructure and provision of public goods and services.

The Finance Minister stressed that no Commencement Certificates shall be issued to any covered entity which does not comply with the process in the above-mentioned laws. The Finance Minister assured Ghanaians that “Regulation 11 (a) and (b) of L.I. 2411 will be strictly enforced”.

Suspension of the purchase of vehicles by MDAs and MMDAs

To further contain expenditures in 2022 and the medium-term, the government promises to reinforce its policy to suspend the purchase of vehicles by MDAs and MMDAs except with the express approval of the Chief of Staff based on a preapproved budget provision. Also, MDAs must use competitive methods of procurement and minimize the use of Single Source processes to ensure value for money, Mr. Ofori-Atta instructed.

Accordingly, Mr. Ofori-Atta urged all MDAs and MMDAs to strictly commit to their respective appropriated expenditure ceilings for obligations relating to each individual year specified in multi-year contracts to preserve the credibility, integrity, and relevance of the Multi-Year Fiscal Strategy. Contract Appointments Contract Appointments Contract Appointments