Ghana’s Controller and Accountant-General, Kwasi Agyei says the country’s growing wage bill threatens long-term fiscal sustainability and development.
He revealed that over 57% of Ghana’s domestic revenue goes to pay public sector salaries, leaving little room for other needs.
Agyei warned this huge wage burden is crowding out funding for health, roads, and education, weakening national development efforts.
He made these remarks at a media briefing in Accra during the African Association of Accountants General’s upcoming conference launch.
“When you calculate the inflows, about 57 to 58 percent is used for salaries alone. This is unsustainable,” he said.
He stressed that paying nearly 60% of all revenue on wages limits room for key government spending on priority sectors.
In February, labour unions accepted a 10% salary raise after discussions with the government and President John Mahama’s intervention.
Mahama appealed to workers to be moderate in their demands, promising better wages once the economy stabilises.
The government is working to reduce expenditure and meet conditions under the International Monetary Fund (IMF) programme.