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John Mahama’s cost-cutting measures signal new era of fiscal discipline

Fri, Jul 18 2025 7:48 AM
in Ghana General News
john mahamas cost cutting measures signal new era of fiscal discipline
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WhatsApp Image 2025 07 18 at 07.43.21 95a2280a e1752824823997

In a decisive move to restore public confidence in government expenditure, President John Dramani Mahama has unveiled a comprehensive suite of austerity measures aimed at drastically curbing public spending and promoting more efficient utilisation of national resources.

Among the most striking directives is the cancellation of fuel allowances for government appointees—a policy anticipated to save the nation millions of cedis annually. This initiative forms part of a wider effort to streamline governmental operations and eliminate wasteful spending.

The Mahama administration has also reduced the number of ministers from 124 under the previous government to a leaner 60, effectively halving the ministerial positions.

This single measure is projected to yield savings amounting to hundreds of millions of Ghana cedis, substantially easing the financial load on the state.

In a symbolic yet impactful move, the government has slashed the budget for the 2025 Independence Day celebrations from GHS 15 million in 2024 to merely GHS 1.5 million, underscoring the call for modesty in national commemorations amid prevailing economic hardships.

Demonstrating a sustained commitment to fiscal responsibility, the allocation for Goods and Services and Capital Expenditure at the Office of Government Machinery has been reduced by GHS 419 million compared to the previous year.

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Furthermore, the overall government budget has been trimmed by GHS 10 billion, reinforcing efforts to bring national spending under control.

To further entrench these cost-saving reforms, staffing at the Office of the President has been significantly reduced, lowering personnel costs and enhancing administrative efficiency.

In a bid to eliminate non-essential outlays, DSTV subscriptions in government offices have been terminated, and new restrictions imposed on official travel, including a ban on first-class flights for public officials.

These sweeping reforms reflect President Mahama’s unwavering commitment to prudent governance and responsible resource management.

As Ghana contends with economic turbulence, these measures are expected to stabilise public finances and restore trust in the leadership’s stewardship of the national purse.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

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