Ghana's public sector pay exceeds ECOWAS threshold - Finance Minister
Finance Minister, Dr. Cassiel Ato Forson, warned that Ghana's public sector wage bill for 2025 exceeds the recommended threshold set by the Economic Community of West African States (ECOWAS). Speaking on Tuesday, March 17, during a dialogue with government officials and organised labour, Dr. Forson raised concerns over fiscal sustainability. The 2025 compensation budget accounts for 44% of non-oil tax revenue, 5.64% of GDP, and 33.78% of total government expenditure.
The ECOWAS convergence criterion recommends that compensation should not exceed 35% of non-oil tax revenue, making Ghana's 44% figure well above the regional benchmark. In 2025, non-oil tax revenue stood at GH¢183 billion, including the District Assemblies Common Fund, Ghana Education Trust Fund, and NHIA levy, which amounted to GH¢55.97 billion, and debt servicing totalled GH¢ 64.3 billion. This left only GH¢61.9 billion available for wages.
The government's wage bill alone amounted to GH¢78.9 billion, creating a financing gap. The state was forced to borrow approximately GH¢17 billion just to meet salary obligations.
Quick Summary
Finance Minister Dr. Cassiel Ato Forson met with government officials and labour representatives to discuss Ghana's public sector compensation. The Minister shared data that raises questions about the nation's fiscal responsibility - and hints at tough choices ahead.
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