Expenditure cuts : Is ¢3.5bn target enough to restore confidence in the economy? – Joe Jackson asks

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A Financial Analyst, Mr Joe Jackson has questioned whether the ¢3.5billion being targeted from the expenditure cuts as announced by the Finance Minister, enough to restore confidence in the economy.

In the view of Mr Jackson, the country is broke and more hard decisions have to be taken by the government.

“Hon K Ofori Atta envisages saving about GHS3.5billion from the new expenditure cuts. This is 3.5% of budget expenditure (GHS100.5b). Is this enough to restore confidence in the economy?#BrokeGhana #HardDecisions,” he tweeted on Sunday March 27.

Mr Ofori-Atta announced on Thursday March 24 that with immediate effect, the government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year.

He said this will affect all new orders, especially 4-wheel drives.

“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,” he said.

“Again, with immediate effect Government has imposed a moratorium on all foreign travels, except pre-approved critical/statutory travels; Government will conclude on-going measures to eliminate “ghost” workers from the Government payroll by end December 2022;

“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; ii. 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 1st April 2022,” he added.

“We will pursue a comprehensive re-profiling strategies to reduce the interest expense burden on the fiscal; and liaise with Organised Labour and Employers Association to implement with immediate effect, the measures captured in the Kwahu Declaration of the 2022 National Labour

“Conference, including reforms towards addressing salary inequities / inequalities (e.g. Article 71 Office Holders), the weak link between pay to productivity and the sustainability of the payroll.

“Let me say this, President Nana Addo Dankwa Akufo-Addo has absolutely no intention to roll back on a major policy like Free SHS. We see education as the best enabler for sustainable economic growth and transformation and will do more to improve on it for it to serve more and better our children. All of these measures are aimed at ensuring that we achieve the 7.4% deficit target set in the 2022 budget” Mr Ofori Atta further stated.

By Laud Nartey|3news.com|Ghana

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