Business News of Friday, 13 March 2015
Source: Citifmonline.com
Three government agencies Driver and Vehicle Licensing Authority (DVLA), Environmental Protection Agency (EPA) and the Energy Commission will this year be weaned off government’s financial assistance.
The three are the first batch of agencies affected by a new government policy introduced in 2014 to wean some of its agencies from government funding. The development is part of moves to trim down the wage bill.
Government is expecting to save between GH¢20 million and GH¢25 million this year following the move.
Compensation of employees which comprises wages and salaries, allowances, pensions, gratuities and social security contributions by government on behalf of its employees is estimated at 12.3 billion cedis which is 9.1 percent of GDP for 2015.
Of this amount 10.3 billion cedis (7.1 percent of GDP) is estimated for the payment of wages, salaries and allowances.
While 750.9 million cedis, 216.0 million cedis and 1.1 billion cedis is estimated for pensions, gratuities and social security respectively.
Finance minister Seth Tekper during his presentation of the 2014 Budget stated that 12 government agencies would be weaned-off government subvention within a period of three years.
Presenting new oil revenue figures to parliament yesterday March, 12, 2015, the finance minter said the other nine will be done in subsequent years.
‘The weaning off of some subvented agencies from government payroll has begun three agencies namely Driver and Vehicle Licensing Authority (DVLA), Environmental Protection Agency (EPA) and the Energy commission which have the capacity to be financially independent based on their internal generated funds have been identified for weaning off this year.
Nine other agencies are being reviewed for consideration for subsequent years’.