2023 Budget: Ofori-Atta Announces Ban On Public Sector Employment, Use Of V8s And Other Austere Measures

• The Minister of Finance, Ken Ofori-Atta, has announced that the government won't hire workers from January 2023
• This forms part of cabinet directives on expenditure measures contained in the 2023 budget statement and economic policy document
• Among some of the expenditure rationalisation measures announced include a 50% reduction in fuel coupons and a ban on the use of V8s except for cross-country travels

To manage Ghana's expenditure in the face of the ever-worsening economic crisis, the government has announced some tough measures in the 2023 budget.

According to the Finance Minister, Ken Ofori-Atta, the cabinet approved the measures geared towards expenditure rationalisation.

2023 Budget: Government Announces Austere Measures From January 1

Notable among the austere measures include a freeze on hiring workers from January 1, 2023.

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Ofori-Atta reduces controversial E-Levy to 1% from 1.5 per cent

That's not all; there's also a 50% slash in fuel coupons to political appointees and heads of MDAs, MMDAs and SOEs and a freeze on the use of V8s and V6s except for official cross-country trips.

2023 Budget: Finance Minister Justifies Austere Measures Says It Will Help Reduce Financial Strain On Cedi

Announcing the cabinet directives on expenditure measures during the presentation of the 2023 budget statement and economic policy document, Ken Ofori-Atta said the move would help release the financial strain on the Ghana cedi.

Also, the minister announced a freeze on importing new vehicles and foreign travel for all Government officials.

The embattled minister also added that all government agencies should purchase locally assembled vehicles instead.

2023 Budget: Finance Minister Announces 2.5% Increase In VAT To Support Roads And Digitalisation Agenda

Earlier, YEN.com.gh reported that the Akufo-Addo-led government had announced an increment in the Value Added Tax (VAT) rate by 2.5%. According to the finance minister, Ken Ofori-Atta, the move is necessary as it will help the government’s massive infrastructural drive.

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2023 budget: Ofori-Atta increases VAT by 2.5% to support infrastructure and digitalisation

In justifying the VAT rate, which has been increased by 2.5 per cent, the minister said it would directly support the construction of roads in the country and the digitalization agenda of the NPP government.

Source: YEN.com.gh