Controller and Accountant-General, Kwasi Agyei, has raised alarm over Ghana’s escalating public sector wage bill, cautioning that it poses a serious threat to the country’s fiscal sustainability.
Speaking at a media briefing in Accra ahead of the third Annual Conference of the African Association of Accountants General (AAAG), Mr. Agyei revealed that over 57 percent of Ghana’s domestic revenue is currently being spent on public sector salaries.
“When you sum up all the money that has come in and strike the average, between 57 to 58 percent goes into salaries. This is a threat to fiscal sustainability,” he stated.
He warned that the situation is crowding out investment in critical sectors such as health, education, and infrastructure, making it difficult for the government to finance essential development projects.
“It means almost 60 percent of all domestic revenue is being used to pay salaries, leaving little room for other priority government spending,” he added.
His concerns come amid ongoing efforts by the government to curb expenditure and meet targets under the International Monetary Fund (IMF) programme.
In February, organised labour agreed to a 10% salary increase following an appeal by President John Mahama for moderation in wage demands. The president assured that once economic stability is restored, improved remuneration for workers would be prioritised.
Mr. Agyei stressed the need for urgent reforms to ensure a more balanced and sustainable use of public resources.
Source: AdomOnline
ALSO READ:
