Deputy Finance Minister Abena Osei-Asare announced 20% spending cuts for ministries, departments and agencies.
According to her, this is part of the government’s efforts to cut spending to deal with the country’s growing debt.
This follows the Finance Minister’s announcement to cut quarterly budget forecasts for all government institutions by 20%.
Speaking on JoyNews’ PM Express Business Edition, Abena Osei-Asare noted that the cuts will not affect compensation, interest payments and statutory funds.
“In the 1st quarter of 2022 by what the PFM will allow the Minister to do, the Minister has issued to the various cities, to the various Ministries, Departments and Agencies and made them aware of the cuts. Everyone saw a 20% reduction.
“Let me tell you, in terms of compensation and interest payments, those are things you can’t cut,” she said.
“Apart from interest payments and apart from compensation and statutory funds, which is a function of the income we generate. All ministries, departments and agencies have seen their cuts in their allocation,” she added.
According to her, the 20% cuts will not be problematic for the functioning of these institutions, since normally the first quarter is for institutions to plan for the coming year.
“The first quarter is more planning, so we want them to use this quarter to redefine their needs. So that’s what you are going to be given or have been given for this first quarter, so look at your needs and prioritize -the.
“Usually the first quarter is more about planning and so at this stage of planning, the Minister of Finance is telling you that we have reduced the allocation of everyone, ministries, departments and agencies by 20%. so is what you have, so look into your programs and activities and reprioritize for the first quarter,” she said.