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No salary increments for public sector workers till 2024 – Finance Ministry

Stephen Kwabena Attuh – ASK The Finance Ministry says public sector workers must not expect any huge wage increments from now till 2024.
No huge salary increments for public sector workers till 2024 – Finance Ministry
No huge salary increments for public sector workers till 2024 – Finance Ministry

The Technical Adviser at the Ministry, Dr Samuel Nii Noi Ashong, said there is currently no money to increase the wages of workers.

Dr Nii Noi Ashong said this during a discussion on the 2021 budget organised by the Ghana National Chamber of Commerce and Industry (GNCCI).

He noted that the impact of the COVID-19 pandemic has forced the government into tightening its belts.

“If you look at the 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,” he said, as quoted by Myjoyonline.

“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.”

Caretaker Finance Minister, Osei Kyei Mensah Bonsu, announced a number of taxes to be imposed on Ghanaians while reading the budget on Friday, March 12, 2021.

These taxes include a COVID-19 Health Levy; 1% increase in National Health Insurance Levy and 1% increase in flat VAT rate.

There is also a 30 pesewas increase in fuel prices to take care of excess power capacity charges [20 pesewas] and Sanitation and Pollution Levy [10%].

The taxes have been criticised by the majority of Ghanaians, but Dr Nii Noi Ashong insists the government needs the money.

“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,” he added.

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