Government is targeting to reduce compensation of public sector employees by 0.5 percent of GDP.
According to the government, it is undertaking what it describes as wage moderation to achieve the target.
This is contained in the Ghana 3-year programme with the International Monetary Fund to achieve fiscal discipline and return the country back to economic growth.
The document also says wages of public sector workers will be calibrated to ensure a balance between burden sharing, productivity, and capacity to pay.
Clearly, public sector employment could be in danger in view of what government seeks to achieve under the IMF deal, but the Minister of State at the Finance Ministry Dr. Mohammed Amin Adam, says there will be no freeze on employment.
According to him, the government will employ for critical sectors of the economy.
“There is no where is the statement that says there is a freeze on employment. We are not going to do that. But this is not also different from what we have been doing.”
“For the past two years, recruitment on the government side which are the security agencies, teachers and nurses are critical to our development and these recruitments are backed by financial clearance.”
Meanwhile, President Akufo-Addo has emphasised that the bailout secured from the International Monetary Fund (IMF), will not be an instant panacea for the country’s challenges.
The President believes it will, nonetheless, play a crucial role in restoring confidence and reopening opportunities that have been limited in recent years.
During a national address on Sunday, the President acknowledged that the approval represents a positive step towards putting the country back on track.
“Access to the IMF facility will not spell the immediate end of the difficulties we are in presently, but the fact that we have been able to negotiate such a deal sends a positive message to our trading partners, creditors and investors,” President Akufo-Addo stated during his May 28 address.
Source: Ghana News
