Ex-Gratia Removal Key to NDC’s Expenditure-Cutting Measures – Prof. Gatsi Says
Dean of the University of Cape Coast Business School, Professor John Gatsi, has intimated that there is going to be a gradual implementation of the removal of ex-gratia handed to government appointees by the incoming NDC administration.
The gradual removal of ex-gratia according to Prof. Gatsi, will be among several policies implemented to aid reduce government expenditure while enhancing revenue mobilisation.
Commenting further on the removal of ex-gratia for appointees, during the NorvanReports X Space Discussion on the topic, “Fiscal Sustainability Amid Tax Cuts and Manifesto Promises,” Prof Gatsi, however, remarked about some challenges that may face the removal of the ex-gratia, asserting that while direct appointees of the President-elect John Mahama will forgo their ex-gratia, other appointees not directly appointed by the President-elect may not.
“We (Ghanaians) should expect some policy implementations that will enhance expenditure cuts and enhance revenue mobilisation, so that the country can achieve a comfortable sustainability of its fiscals to enhance the business environment. We are going to see a lean government which is a huge reduction in expenditure and also see a gradual policy implementation of the removal of ex-gratia,” he remarked.
“But of course, there will be some legal implications and challenges to the removal of the ex-gratia because although the appointees of the incoming government would agree with the President that they want to forgo their ex-gratia, we do not know how other appointees such as the judiciary, parliamentarians particularly those on the other side (NPP Caucus) who are not direct appointees of the President will react towards it because they are in office at a time which the law allows for ex-gratia to be paid to them. So that will be some of the likely difficulties unless everybody across the board agrees that even though they qualify to receive ex-gratia, they would want to forgo it,” he added.
“But I am very sure that whether the law is changed or not, the appointees of the President will sign onto the deal that they will not receive ex-gratia,” Prof Gatsi further stated.
President-elect John Mahama, in the run-up to the 2024 general elections promised to scrap the payment of ex-gratia to members of the executive should he be re-elected.
“The payment of ex-gratia to members of the executive will be scrapped. The necessary Constitutional steps to make this happen will start in earnest in 2025. We will also persuade members of the other arms of government to accept its removal,” said President-elect John Mahama.
The payment of ex-gratia to government appointees is a major expenditure item that puts a significant strain on the government’s finances.
