Deputy Finance Minister, Abena Osei-Asare has announced 20% cuts to the expenditures of Ministries, Departments and Agencies.

According to her, this is part of the government’s efforts to reduce expenditure in order to deal with the country’s growing debt.

This follows the Finance Minister’s announcement to cut 20% of quarterly budget estimates of all government institutions.

Speaking on JoyNews’ PM Express Business Edition, Abena Osei-Asare noted that the cuts will not affect compensations, interest payments and statutory funds.

“In the 1^st quarter of 2022 per what the PFM will allow the Minister to do, the Minister issued to the various cities, to the various Ministries, Departments and Agencies and letting them know the cuts. Everybody has seen a 20% cut.

“Let me tell you that in terms of compensation, and interest payments, those are items you cannot cut,” she said.

“Apart from the interest payments and apart from compensations and statutory funds, which is a function of the revenues that we generate.  All ministries, departments and agencies have seen their cuts in their allocation,” she added.

According to her the 20% cuts will not be problematic to the running of these institutions as normally the first quarter is meant for institutions to plan for the year ahead.                                   

“The first quarter is more of planning so we want them to use this quarter to reprioritize their needs. So like, this is what is going to be given to you or has been given to you for this first quarter so look at your needs and prioritise them.

“Usually the first quarter is more of planning and so in this planning stage, the Finance Minister is telling you that we have cut everybody’s allocation by 20%, Ministries, Departments and Agencies. So this is what you have, so look within your programmes and activities and reprioritize for the first quarter,” she said.