The Government of Ghana has as a result of the deal it signed with the IMF as regards US$940 million bailout, has begun putting freeze on funding for new projects and loans and cutting down expenditure on travels by public officials.
Ghana is to receive the US$940million from the International Monetary Fund (IMF), to help the country turn the ailing economy around.
Ghana could also be supported with a total of ??SDR 664 million (around US$940 million), or 180 percent of Ghana?s IMF quota.
Ghana is thus?required to reduce aggressively public spending under a possible Fund programme, likely to come in April, following the conclusion of talks with IMF staff mission.
The Finance Minister, Seth Terkper,
said government is also working to reduce the amount it spends paying public sector workers and that?”We are going to require Ministries, Departments and Agencies to prioritise their capital expenditure. For example not necessarily in areas where oil revenues are spent but to curtail the extent of say travel”, he said.
He spoke on JOY FM.
Also the?Employment Minister, Haruna Idrissu, said there would not be layoffs in the public sector under an IMF programme, since? government’s plan is rather freeze employment?and clean the wage bill of ghost names.
“What we have agreed on in terms of the wage bill is to keep it within the budget limits and not to allow for upward adjustments or review of that will undermine our [government] efforts at fiscal consolidation”, he said.