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Ghana’s Wage Bill Consumes Over 57% of Revenue—Controller and Accountant-General Warn of Fiscal Crisis
The Controller and Accountant-General, Kwasi Agyei, has issued a stern warning about the country’s unsustainable public sector wage bill, which he says is consuming over 57 percent of domestic revenue—a situation he described as a major threat to fiscal sustainability.
Addressing journalists at a media briefing in Accra ahead of the African Association of Accountants General’s (AAAG) third Annual Conference, Mr. Agyei expressed concern that the government’s ability to fund vital sectors such as health, education, and infrastructure is being severely undermined by the soaring salary commitments.
“When you sum up all the money that has come and strike the average, between 57 and 58 percent goes into the salaries we pay. This is a threat to fiscal sustainability,” he stated.
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He emphasised that the current wage structure is crowding out critical investment in other key development areas. “It means all the revenues that come, almost 60 percent, are used to pay salaries, which leads to a crowding-out effect—we are not creating space for other prioritised government expenditure,” Mr. Agyei added.
The alarm comes as the government continues efforts to meet fiscal targets under its International Monetary Fund (IMF) program, which places a strong emphasis on expenditure control and structural reforms.
Earlier this year, organised labour agreed to a 10 percent salary increase, following negotiations with the government. President John Mahama at the time urged unions to remain moderate in their demands, promising improved wages once economic stability is restored.
With rising inflation, currency depreciation, and fiscal pressures mounting, experts have echoed Mr. Agyei’s concerns, urging the government to undertake urgent wage reforms and prioritise spending that drives economic growth.
The upcoming AAAG conference is expected to convene finance and accounting professionals from across Africa to explore solutions to the continent’s fiscal and public financial management challenges.
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