Deputy Minister of Finance Charles Adu Boahen made the announcement at a media briefing in Accra to spell out efforts by the government to regain investor confidence and address challenges facing the economy.

According to the Deputy Minister, a chunk of the budget of MDAs and Metropolitan, Municipal and District Assemblies (MMDAs) went into compensation.

Governance Analysts and Economists have lauded the move by the government but cautioned that remunerations such as compensations should not be affected.

One such Analyst, Fred Oduro said some activities of Ministries, Departments and Agencies likely to be affected by the budget cut will be monitoring and Evaluation as well as training workshops.

Analyst Bernard Oduro Takyi said the move will have bizzare effect on the operations of the Municipal Assemblies.

Meanwhile, Director of the Institute of Statistical, Social and Economic Research ISSER at the University of Ghana Professor Peter Quartey described the 20% reduction in budget expenditure as ”reasonable”.