Government is set to ban the use of V8 and V6 vehicles by appointees, except for the use of cross-country travels in 2023.

It revealed that the ban forms part of the implementation of cabinet’s directives on expenditure measures.

Speaking at the 2023 budget reading, finance minister, Ken-Ofori-Atta, revealed that as a first step towards expenditure rationalization, the ban will take effect from January, 2023.

“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”.
Ken Ofori-Atta

The finance minister indicated that there will also be limited budgetary allocation for the purchase of vehicles. He noted that for the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles.

Among other austerity measures, government has directed all MDAs, MMDAs and SOEs to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This, he explained, 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.”
Ken Ofori-Atta

Mr Ofori-Atta further noted that only essential official foreign travel across government, including SOEs shall be allowed. As such, 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.”
Ken Ofori-Atta

Government cuts back on expenditure

Government-sponsored external training and Staff Development activities, Mr Ofori-Atta noted, at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year.

Also, he emphasized that there will be a reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing.

“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.”
Ken Ofori-Atta

Government equally does not foresee “new government agencies” being established in 2023, with no distribution of hampers for 2022.

“There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024. All non-critical project must be suspended for 2023 Financial year.”
Ken Ofori-Atta

The finance minister expressed government’s support to Ghanaians and noted that government cares deeply about its people and is very much concerned about their current plight and the future of the country.

In light of this, he stated that the 2023 Budget has been prepared with high consideration for the aspirations of Ghanaians and the brighter prospects of the economy to transition into Upper Middle Income within a decade.

“It reflects our determination and resolve to confront the current daunting economic challenges facing our nation head-on and reset the economy.”
Ken Ofori-Atta