Payment of public sector promotion related arrears canceled

Payment of public sector promotion related arrears through the issuance of release letters and warrants has ceased forthwith.

According to the 2020 Budget Implementation Instructions signed by the Finance Minister, Ken Ofori-Atta, all promotion related arrears will be effected through the payroll.

Class Business understands that the policy of net recruitment is, however, still in force for all Municipal and District Assemblies except the Ministries of Education and Health.

With effect from January 2020, warrants will be issued at Cost Centre level every quarter to cover MDAs payroll expenditure and allowances.

The Minister of Finance also said it has become imperative to manage the non-salary related allowances.

Consequently, he advised all Ministers and Heads of Institutions to ensure that all non-salary related allowances are examined and certified by their respective Internal Audit Unit before they are processed for payment.

Meanwhile, Ministries, Municipal and District Assemblies have been advised to explore other areas of infrastructure financing that do not directly impact on the public debt levels.

This includes the use of Public-Private Partnership and other interventions.

Also, pursuant to Section 96(1) of the Public Financial Management Act, 2016 (Act 921), ministers and heads of institutions have been told that it is an offence to make unauthorised commitment resulting in a financial obligation for the government.

The Budget Implementation Instructions which is in accordance with the Public Financial Management Act, 2016 (Act 921) will guide all Ministers and Chief Directors in the implementation of the 2020 Budget.