'Don’t expect significant increment in wages anytime soon' – Expert tells civil servants
Caretaker Finance Minister, Osei Kyei-Mensah Bonsu
Technical Adviser at the Finance Ministry, Dr Samuel Ashong has told workers in the public sector not to expect a significant increment in their wages for a number of years.
Read full articleAccording to him, the ministry currently does not have the requisite funds to meet the demands of workers.
Making a submission during a discussion on the 2021 budget organised by the Ghana National Chamber of Commerce and Industry (GNCCI) on March 17, Dr Ashong worried that the situation is likely to persist for a number years.
“If you look at the 2021 Budget, COVID-19 is not expected to abate until the end of 2023 and we’re all looking to be tightening our belts for a while and people should not be expecting huge wage increases in the course of the next few years. This is because we don’t have money to pay for it,” Dr Ashong noted.
“You’ll realise that between wages and compensations for employees and unencumbered domestic revenues, if you net up all the mandated transfers which are required by law, talk of GETFund transfers, National Health Insurance, District Assemblies Common Fund (DACF), the rest which is left is not enough to pay for wages and salaries, goods and service, social intervention programmes, that portion alone is not enough to pay for even wages and salaries,” he explained.
He further urged citizens to brace themselves for a much tougher time ahead as a result of the coronavirus pandemic’s impact on revenue and income shortfalls.
“It is not a rosy picture and let’s call a spade a spade and so when people go on about saying we don’t need the taxes and government must give this and that, the reality is that we don’t have the money,” Dr Ashong stressed.
Meanwhile, government in its 2021 budget intends to generate some GH¢72 billion in revenue for the 2021 fiscal year. Out of this amount, 90 percent will go towards interest payment of loans and compensation.
