Government reduces fuel allocation of political appointees by 50%

Finance Minister Ken Ofori-Atta has announced the government’s directives to its political appointees including the metropolitan, municipal and district assemblies (MMDAs) and state-owned enterprises (SOEs) to reduce fuel allocation by 50%.

The announcement, according to the finance minister is hopeful to greatly reduce government expenditure on fuel consumption.

He made this known while presenting the 2023 Budget and Economic Statement in Parliament on Thursday, November 24.

The 2023 Budget focused on the government’s strategies to restore and stabilise the macro-economy, build resilience, and promote inclusive growth and value creation.

The directives he noted will take 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,” Ofori-Atta said.

He added that “Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles.”