Finance Minister, Ken Ofori-Atta, has revealed that his outfit is in talks with Ministries, Departments and Agencies (MDAs), to take a second look at their expenditure.

According to him, the move is part of a series of measures by government to ensure that the economy is salvaged from the current difficulties.

Addressing the press on Thursday, the Finance Minister reiterated that if the measures he has outlined are implemented to the letter, the country's economy will be restored to a more progressive path.

"Discretionary spending is to be further cut by an additional 10%. The Ministry of Finance is currently meeting with MDAs to review their spending plans for the rest of the three (3) quarters to achieve the discretionary expenditure cuts", the Minister stated.

Mr. Ofori-Atta further explained that, the interventionary measures are in two folds, that is measures to reduce expenditure, as well as measures to mobilise more revenue for government.

In this regard, the statement from the Finance Minister said "there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective 1st February, 2022. With immediate effect, Government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year.

This will affect all new orders, especially 4-wheel drives. We will ensure that the overall effect is to reduce total vehicle purchases by the public sector by at least 50 percent for the period. Again, with immediate effect, government has imposed a moratorium on all foreign travels, except pre-approved critical/statutory travels".

Other measures included the elimination of 'ghost' workers from the Government payroll by end December, 2022, as well as the conclusion of the renegotiation of the Energy Sector IPPs capacity charges by end of Q3-2022 to further reduce excess capacity payments by 20%, to generate a total savings of GHS1.5 billion.

Meanwhile, the Minority Leader, Haruna Iddrisu, has rubbished the measures announced by the Finance Minister, Ken Ofori-Atta, to mitigate the country’s current economic challenges.

According to him, the measures have not received prior parliamentary review and approval, before being announced to the public.

In an interaction with the press after the Finance Minister’s address on Thursday, Haruna Iddrisu stated emphatically that the Minority does not believe in the measures outlined.

In his view, government should have been clearer in its intention to cut down on its expenses, without any ambiguities.

“Our immediate response to the honourable Minister of Finance is to state emphatically and unequivocally that he’s lost touch with reality; he’s not in tune with the state of the Ghanaian economy.

Our economy today is one that reflects nothing less than a cost of living crisis and a cost of doing business crisis. Both for citizens and for businesses who are unable to cope with the measures so announced by the Honorable Minister for Finance. We do not find his proposed measures adequate enough”, Haruna Iddrisu stressed.