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    You are at:Home»News»Four key cost-cutting measures to cut public spending
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    Four key cost-cutting measures to cut public spending

    Papa LincBy Papa LincJuly 15, 2025No Comments3 Mins Read4 Views
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    President Mahama commits to fiscal discipline President Mahama commits to fiscal discipline

    President John Dramani Mahama has, in the last 6 months in office, adopted various fiscal discipline measures to ensure expenditure rationalisation amid the country’s economic recovery.

    In a recent development, the president has, effective immediately, directed the cancellation of payment of fuel allowances and allocation of fuel to all political appointees.

    According to him, this is aimed at curbing government expenditure, cutting costs and channelling public funds into priority areas.

    This brings the total number of cost-cutting measures to four.

    The measures announced so far include:

    1. No DStv subscription: President Mahama has prohibited the usage of DStv and other satellite television subscriptions at the Jubilee House and will expand it to other government agencies later.

    According to the government, the action is part of a larger cost-cutting plan to cut back on unnecessary public spending and show government humility.

    “I can reveal to you that if you come to this house, there’s no office in this house that is allowed to subscribe to DSTV or any satellite television,” he said.

    2. No first-class travel: President John Dramani Mahama announced a ban on first-class travel for government appointees, emphasising that his administration will be marked by modesty and respect for the people of Ghana.

    He made this known at the swearing-in ceremony of ministers at the Jubilee House on Friday, February 7, 2025.

    The president stressed that public officials must be mindful of how they use state resources.

    He also stated that he had directed the Chief of Staff, Julius Debrah, to officially inform ministers and government appointees of an immediate restriction on non-essential travel.

    “Any travel that is deemed essential and necessary must be cleared first with the Office of the Chief of Staff and such travels will have to be taken in modesty; no first class,” he said.

    3. No government appointee must buy state assets: President John Mahama, as part of his campaign promise and decision to tackle corruption through Operation Recover All Loot (ORAL), announced that no appointee under his government will be allowed to buy state assets.

    In an engagement on July 7, 2025, he said, “Anybody serving in my government will not be allowed to buy a state asset. Nobody serving in my government will buy a state asset. Vehicles, cars, buildings, land, or anything else, nobody serving in our government will be allowed to buy a state asset.”

    4. No cash gifts above GH¢20k: During the launch of a new code of conduct for appointees on May 5, 2025, President Mahama reiterated that all government appointees are barred from engaging in acts that compromise ethical standards, reinforcing his administration’s commitment to integrity in governance.

    “We all know our cultural fondness for gifts, but we must now draw a clear line between appreciation and influence. Appointees are prohibited from accepting gifts or favours, especially from companies or individuals with vested interests in government decisions. If a gift is received during an official engagement and its estimated value exceeds GH¢20,000, it must be declared. Upon leaving office, such gifts must be surrendered unless expressly permitted by the President to retain them,” he stated.

    President Mahama has also suspended Independence Day celebrations at the Independence Square to save costs.

    He has also announced a review of port charges pending parliamentary approval.

    Despite these measures, it is unclear how much the government is saving from these cost-cutting measures.

    SSD/AME

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