Highlights of 2023 Budget Statement

Ken Ofori-Atta
Ken Ofori-Atta

The Minister of Finance, Ken Ofori-Atta has presented the 2023 Budget Statement and Economic Policy to the Parliament House on November 24, 2022.

According to the 2033 budget presented by Ken Ofori-Atta, he spoke about nineteen (19) plans government has scheduled to take effect come January 2023.

The budget has laid embargo on employment in both civil and public sectors, a ban on the use of V8s/V6s to some extent, limitation of budget for the purchase of vehicles among others.

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The 2023 budget statement also captured some key highlights across all sectors.

BELOW IS A BRIEF OF THE 2023 BUDGET

1. VAT increased to 2.5%.

2. E-levy reduced from 1.5% to 1%.

3. Government to undertake major structural reform in public sector.

4.  4% year-on-year growth recorded for overall GDP.

5. Domestic revenue amounted to GH¢ 64,601million, 10.9% of GDP.

6. Place a cap on salary adjustment of SOEs to be lower than negotiated base pay increase on Single Spine Salary Structure for each year.

7. 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.

8. A ban on the use of V8s/V6s or its equivalent except for cross country travels. All government vehicles would be registered with GV green number plates from
January 2023.

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9. Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles.

10. 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.

11. As far as possible, meetings and workshops should be done within the official environment or government facilities.

12. 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.

13. Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.

14. A freeze on new tax waivers for foreign companies and review of tax exemptions for free zone, mining, oil and gas companies.

15. A hiring freeze for civil and public servants.

16. No new government agencies shall be established in 2023.

17. There shall be no hampers for 2022.

18. There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024.

19. All non-critical project must be suspended for 2023 Financial year.

SOURCE: Coverghana.com.gh

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