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Budget 2023: Gov’t announces freeze in the hiring of public sector workers

Ken Ofori-Atta, Finance Minister, has announced that the government will not recruit any more staff into its workforce next year.

This was revealed by the minister when he presented the 2023 budget statement to Parliament on Thursday, November 24, 2022.

He claims that this is intended to reduce spending in the future.

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He said the “hiring freeze for civil and public servants” formed part of cabinet directives on expenditure measures in the harsh economic times.

Additionally, “no new government agencies shall be established in 2023.”

Below are the directives the Minister announced in the budget

  1. 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;

• 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

• 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

By: Rainbowradioonline.com/Ghana

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