As part of measures to mitigate the economic hardships in the country, government has revealed that it will suspend the establishment of new public sector institutions by the end of April 2022.

The Finance Minister, Ken Ofori-Atta while addressing Ghanaians on new measures taken to reduce the current economic hardships, said this has become necessary for government to be able to achieve its 7.4% deficit target set in 2022.

This new measure will complement other measures such as the 30% salary reduction for all Cabinet Ministers and heads of State-Owned Enterprises, effective April 2022 and the reduction in fuel prices by 15 pesewas to stabilise the country’s fiscal resources.

He added that government will also “prioritise ongoing public projects over new projects. This is to enhance the efficient use of limited public funds over the period by finishing ongoing or stalled but approved projects.”

“These times call for very efficient use of energy resources. In line with this, there will be a 50% cut in fuel coupon allocations for all political appointees and heads of government institutions, including SOEs, effective February 1, 2022.

“Again with immediate effect, government has imposed a moratorium on all foreign travels except pre-approved critical statutory travels. Also, government has reduce expenditure on all meetings and conferences by 50%, effective immediately,” he announced.

According to the Minister, government has also decided to immediately suspend the purchase of imported vehicles by government officials for the rest of this year.

The ban on vehicle purchases by public officials “will affect all new orders, especially four-wheel drives.”

Government has already announced a 30% cut in expenditure at the Presidency and a 30% salary cut for its appointees as part of austerity measures to resolve the prevailing economic crisis.

Council of State members have also resolved to reduce their monthly allowances by 20% until the end of the year due to the country’s economic challenges.

Many Ghanaians have lamented how the rising fuel prices, hikes in transport and food prices, and the depreciating cedi have compounded the cost of living.

But the Finance Minister has assured that government will ensure effective implementation of the expenditure measures announced to ensure an enhanced economy.