Former
Minister of state at the Finance Ministry, Dr Anthony Akoto Osei says
there’s the need for massive retrenchment in the public sector.
The Old Tafo MP suggested at an economic dialogue organised by the Graphic Group that the Government must be bold to reduce the number of public sector employees to save the economy from grinding to a halt.
He says that is the practical means by which the government can reduce the huge wage bill.
Currently government spends over 70 percent of tax revenue on over 650,000 workers in the public sector due to the single spine salary structure (SSSS).
The huge wage bill has been blamed for Ghana’s huge budget deficit.
In addition to calling for the deferment in implementing some aspects of the SSSS, Dr Akoto Osei also says the government must take the bull by the horn to save the situation.
“Most important thing is…some negotiations for retrenchment must begin now. I know government is in discussions with labour. That wage bill cannot be sustained; almost 9 billion just for wages. It cannot be sustained.
“If I were the President, I’ll signal that every ministry must show me 20% of retrenchment in 2015 and 2016”, Dr Akoto Osei said.
Finance Minister Seth Tekper said at the forum that the Government is not averse to some of the suggestions made by Dr Akoto Osei as far as reducing the wage bill is concerned.
Mr Tekper said there was the possibility for voluntary deployment of public sector workers who are nearing retirement amongst other measures.
The Old Tafo MP suggested at an economic dialogue organised by the Graphic Group that the Government must be bold to reduce the number of public sector employees to save the economy from grinding to a halt.
He says that is the practical means by which the government can reduce the huge wage bill.
Currently government spends over 70 percent of tax revenue on over 650,000 workers in the public sector due to the single spine salary structure (SSSS).
The huge wage bill has been blamed for Ghana’s huge budget deficit.
In addition to calling for the deferment in implementing some aspects of the SSSS, Dr Akoto Osei also says the government must take the bull by the horn to save the situation.
“Most important thing is…some negotiations for retrenchment must begin now. I know government is in discussions with labour. That wage bill cannot be sustained; almost 9 billion just for wages. It cannot be sustained.
“If I were the President, I’ll signal that every ministry must show me 20% of retrenchment in 2015 and 2016”, Dr Akoto Osei said.
Finance Minister Seth Tekper said at the forum that the Government is not averse to some of the suggestions made by Dr Akoto Osei as far as reducing the wage bill is concerned.
Mr Tekper said there was the possibility for voluntary deployment of public sector workers who are nearing retirement amongst other measures.
Source: Ghana | RadioXYZonline.com
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