The President of Ghana, Nana Akufo-Addo, and his Ministers, have reportedly cut their salaries by 30 percent, as a measure to reduce spending, as the country struggles with higher fuel costs from the Ukraine-Russia crisis, and stalled progress on a new tax, the government said on Thursday.
The Ghanaian Minister of Finance, Ken Ofori-Atta, announced that foreign travel by government appointees, except for critical missions, and the purchase of imported vehicles, have also been suspended with immediate effect.
He said that the government hopes to save around $400 million, through the measures.
Recall, that global fuel prices have hit all-time highs, because of the Russia-Ukraine war, driving up costs of living and transport in a way that has hit West African countries like Ghana hard.
Ghana’s government is also struggling to raise domestic revenue, as gridlock in Parliament since 2021, has stalled the passage of a controversial 1.75-percent E-Levy tax, aimed at bringing in additional funds.
The Minister’s statement reads: “It is important to stress, right from the onset, that the difficulties we are facing in Ghana, are not peculiar to Ghana.
“Governments in both developed and developing countries are busily coming out with various prescriptions to bring their economies back on track, after the devastating impact of Covid-19 which distorted global supply chains, and the ongoing Russia-Ukraine war.”
Other measures include a 50-percent cut in fuel coupon allocations for all political appointees and Heads of government Institutions.
More news later…
