2023 Budget: Govt Freezes Hiring In Civil, Public Services In 2023 …Bans V8,V6 Usuage


Finance Minister, Ken Ofori-Atta has announced a freeze in recruitment into the public sector from January nex year.

He also banned ministries, department and agencies from using cross country vehicles within their catchment areas except for cross country purposes.

The Finance Minister further reinforced a ban on the procurement of Christmas gifts and presents with state funds.

This move, according to the minister is geared towards expenditure rationalisation going forward.

“Mr. Speaker, as a first step toward expenditure rationalisation, Government has approved the following directives which takes effect from January, 2023:
All MDAs, MMDAs and SOEs are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit system, and fuel depots. Accordingly, 50% of the previous years (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOEs;
A ban on the use of V8s/V6s or its equivalent except for cross country travel. All government vehicles would be registered with GV green number plates from January 2023;

Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles;
Only essential official foreign travel across government including SOEs shall be allowed. No official foreign travel shall be allowed for board members.

Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff;” Mr. Ofori-Atta announced this when presenting the 2023 budget statement Thursday in Parliament.

It addition to that the government has also banned meeting outside agencies.

According to the minister, “As far as possible, meetings and workshops should be done within the official environment or government facilities;

“Government sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year;
Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;
A freeze on new tax waivers for foreign companies and review of tax exemptions for free zone, mining, oil and gas companies;
A hiring freeze for civil and public servants.

Furtherance to that there will be no new government agencies next year as announced by Mr. Ofori-Atta.

He said “No new government agencies shall be established in 2023;

“There shall be no hampers for 2022;
There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024;
All non-critical project must be suspended for 2023 Financial year, he said.

By Vincent Kubi