Reflex Eco Group – Ghana News
by Samuel Boadi (local journalist)
This Blog is sponsored by http://www.reflexecogroup.com
Government has been asked to find ways of funding other sectors of the economy that have been unable to register any progress since the beginning of the year as a result of the huge wage bill that sapped all revenue to the former.
It has also been urged to demand improved output that is commensurate with the huge salaries that are being paid to workers under the Single Spine Salary Structure (SSSS).
A fellow of the Institute of Statistics, Social and Economic Research (ISSER), Prof Augustine Fosu, made the call on Thursday in Accra at a workshop organized by the Economy of Ghana Network (EGN) on the theme: “Macroeconomic Reforms in Ghana’s Economic Development since the 1980s.”
He noted that the Single Spine Salary Structure (SSSS), which has dealt a heavy blow to the country’s finances appeared to have crowded out other critical national commitments, adding that managers of the country’s economy would find it difficult to surmount the challenges if alternative measures are not immediately instituted to make up for the wide slit.
“If the wage bill alone takes about 70 percent, what happens in the other sectors?”
Prof Fosu stated that the SSSS swelled government’s wage bill from almost 30 percent to about 70 percent without consideration of how other sectors including infrastructure, electricity and water would be financed.
He said greater structural transformation was required to enable Ghana slowly but surely get itself off international assistance in fixing its domestic and external fiscal shortages.
Noting that the country’s debt was high, he said there would be nothing wrong with it if the money had been expended on infrastructural expansion among other important issues.
He asked government to engender a reliable power supply, decongest the country’s roads, ports and telecommunications sector and also improve the water supply.
Dr Joseph Kwadwo Asenso, in a presentation on macro-economics challenges and prospects in the medium term, indicated that the re-based Consumer Price Index (CPI) could pose serious challenges to the attainment of single-digit inflation in the current period of petroleum and utilities deregulation.
“High unemployment rate, emerging pressures from the labour front for higher salaries against the backdrop of relatively low revenue generation, the falling commodity prices and the threat to domestic productivity pose challenges to the economy.”
- Single Spine Salary is the headache to Ghana’s economy – Prof. Fosu (modernghana.com)
- Single Spine Pay Policy Shouldn’t Have Been Implemented – Agyeman-Manu (modernghana.com)
- Is Ghana’s Economy Heating Up? (spyghana.com)
- Ghana government admits economy facing liquidity challenges (ghanabusinessnews.com)
- UPDATE 2-Fitch downgrades Ghana’s credit rating on spending worries (xe.com)
- GRNA Wants FWSC To Review Pay Levels Of Nurses, Midwives (thechronicle.com.gh)
- Press Statement: Perfection of Ghana’s Economy (sonetco.wordpress.com)
- Kapeya schools MMD on budget (daily-mail.co.zm)
- Downturn sees average real wages collapse to a record low (independent.co.uk)
- Ghana Turns to Longer Term Debt After Fitch Cuts Rating – Bloomberg (bloomberg.com)