Accra, Ghana – February 27, 2025 – In a move to address the country’s economic challenges, President John Dramani Mahama has announced significant cost-cutting measures aimed at reducing government expenditure. During his State of the Nation Address to Parliament, Mahama outlined plans to reduce the number of ministers, curtail non-essential spending, and implement a more efficient and transparent government structure.
Cabinet Downsizing to 60 Ministers
As part of his cost-cutting strategy, President Mahama revealed that the current number of government ministers will be reduced from 86 to 60. This decision, which is expected to save millions of Ghana cedis, reflects Mahama’s commitment to reducing the size and cost of the government apparatus.
“We must lead by example. By streamlining the number of ministers and ensuring that our resources are used effectively, we can better serve the people of Ghana,” Mahama stated.
The President also emphasized that this reduction would not affect the quality of governance. Instead, he said, it would lead to a more focused and efficient administration that prioritizes the nation’s most pressing needs.
Cutting Non-Essential Government Expenditure
In addition to downsizing the Cabinet, Mahama pledged to cut back on non-essential government expenditure. This includes reducing the costs associated with luxury vehicles, overseas travel, and unnecessary public events. These measures are designed to ensure that every cedi spent is directed toward critical areas such as health, education, and infrastructure.
“Every penny counts in these challenging times. We will prioritize projects that create jobs, stimulate growth, and provide essential services to Ghanaians,” Mahama said.
Efficient Public Spending and Budgetary Discipline
To further ensure fiscal discipline, the President announced plans to introduce a more rigorous budget monitoring system, which will focus on transparency and accountability. He noted that all government projects would undergo strict scrutiny, and only high-priority initiatives would receive funding.
“We are committed to eliminating waste and ensuring that every cedi spent contributes to the development of our nation,” Mahama emphasized.
Strengthening Tax Collection and Revenue Generation
While reducing government spending, Mahama also recognized the need to improve revenue generation. He pledged to enhance tax collection efforts and close loopholes in the tax system to ensure that the country’s tax base is expanded.
The President stressed that these revenue increases would not burden ordinary Ghanaians but would instead focus on ensuring fairness and inclusivity in the tax structure.
Austerity and Accountability in Governance
Mahama’s cost-cutting measures form part of a broader plan to restore economic stability in Ghana, as the country grapples with a GHS 721 billion debt and high inflation. By reducing government waste and improving efficiency, Mahama hopes to build a more sustainable and accountable government that can focus on the nation’s development needs.
“We understand that these decisions may not be easy, but they are necessary to secure a better future for Ghana,” Mahama stated. “The sacrifices we make today will pave the way for a stronger, more prosperous Ghana tomorrow.”
A Unified Effort for Ghana’s Economic Future
In his closing remarks, Mahama called for unity among Ghanaians, urging citizens to support the government’s austerity measures. He reminded the nation that the challenges ahead would require the cooperation of all sectors of society, including businesses, civil society, and political leaders.
“The road to recovery is long, but with the collective effort of all Ghanaians, we will rebuild our economy and ensure prosperity for future generations,” he concluded.
The President’s announcement of these cost-cutting measures sets the stage for what will likely be a challenging but necessary period of fiscal austerity. With these actions, Mahama aims to steer the nation toward economic recovery while maintaining a focus on essential public services.
