Mahama imposes tough cost-cutting measures

In a bold move to restore fiscal discipline, President John Dramani Mahama has rolled out a sweeping set of cost-cutting measures aimed at curbing government expenditure and redirecting public resources toward Ghana’s economic recovery.

With just six months left in office, President Mahama has doubled down on his commitment to responsible governance, announcing a fifth major austerity policy: the immediate cancellation of fuel allowances and fuel allocation for all political appointees.

According to the president, this latest measure is part of a broader strategy to rationalize government spending and ensure that limited public funds are channeled into priority areas such as education, healthcare, and infrastructure.

Five Key Austerity Measures Announced So Far

Over the past few months, the Mahama-led administration has introduced five notable measures to cut unnecessary state spending:

1. No DSTV Subscriptions at Jubilee House

The president banned DSTV and other satellite TV subscriptions at the Jubilee House, Ghana’s presidential seat, as part of a symbolic and practical gesture toward modest leadership.

“If you come to this house, there’s no office that is allowed to subscribe to DSTV or any satellite television,” he declared.

The move will be extended to other government institutions in phases.

2. Ban on First-Class Travel

At a swearing-in ceremony for newly appointed ministers on February 7, 2025, Mahama placed a ban on first-class travel for government officials.

He explained that the decision was in line with efforts to promote modesty and responsible use of state funds.

“Any travel that is deemed essential and necessary must be cleared with the Office of the Chief of Staff. Such travels must be done in modesty—no first class,” Mahama emphasized.

3. No Government Appointee Can Buy State Assets

As part of his anti-corruption initiative dubbed Operation Recover All Loot (ORAL), Mahama prohibited all political appointees from purchasing government assets—including vehicles, land, and buildings.

“Nobody serving in my government will be allowed to buy a state asset,” he affirmed during an engagement on July 7, 2025.

4. Ban on High-Value Gifts Over GH¢20,000

In a bid to uphold ethical standards, Mahama introduced a new code of conduct in May 2025, banning appointees from accepting gifts exceeding GH¢20,000.

Any gift received during official duties must be declared, and unless explicitly permitted by the president, such gifts must be handed over upon exit from office.

5. No Fuel Coupons or Allowances for Appointees

The president’s latest move—scrapping fuel coupons and allowances for government appointees—is expected to significantly cut recurring administrative expenses.

He stressed that leadership must bear the same sacrifices expected of citizens.

Additional Measures in the Pipeline

Beyond these five core policies, Mahama has also suspended this year’s Independence Day celebration at the Black Star Square, citing budgetary constraints. Furthermore, he has ordered a review of port charges, pending parliamentary approval.

While the intentions behind these measures have been largely praised, critics and analysts alike have raised questions about transparency and accountability. As of now, the government has not published data on the expected or actual savings from these initiatives.

Nevertheless, President Mahama’s actions signal a clear shift toward a more restrained and accountable style of governance, even as Ghana continues its journey to economic recovery.

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