Loading...

Ghana scraps fuel allowances for ministers in cost-cutting push

Ghana scraps fuel allowances for ministers in cost-cutting push

Ghana’s government has abolished fuel allowances for ministers and other senior public officials as part of broader efforts to reduce public spending and tighten fiscal management, officials said.

The decision, announced under President John Dramani Mahama’s administration, removes fuel entitlements that previously covered transportation costs for ministers and top government appointees. The officials will now be required to cover fuel expenses for official duties through revised arrangements, according to government sources.

The measure is part of a wider austerity drive aimed at curbing government expenditure, improving efficiency in public finances, and redirecting resources toward priority sectors such as economic recovery and public services.

Authorities have framed the policy as a signal of fiscal discipline, amid ongoing pressure on public finances in several West African economies facing inflationary pressures and debt management challenges.

While the government has not detailed the full estimated savings from the reform, officials say the move is intended to set an example of restraint at the highest levels of government.

Ghana has in recent years implemented various expenditure-control measures in response to economic strain, including reforms supported by international financial institutions.

The fuel allowance removal adds to a growing list of cost-cutting initiatives as the administration seeks to stabilise public finances and restore economic confidence.