Ghana’s wage bill extraordinarily high compared with regional peers — Theo Acheampong
Economist and political risk specialist Dr Theo Acheampong says Ghana’s wage bill is extraordinarily high compared with regional peers, leaving little room for capital spending after other major commitments.
Economist Dr Theo Acheampong has warned that Ghana's wage bill is significantly higher than its regional competitors, leaving limited funds for capital spending. Speaking on Joy News' PM Express, Dr Acheampong emphasized the need to analyze public sector salaries in conjunction with productivity and ongoing budget constraints. He pointed out that Ghana's wage bill as a percentage of total expenditure has remained consistent over time, fluctuating between 25% and around 36%, with an average of about 30%.
Dr Acheampong's concerns extend beyond the sheer size of the wage bill. He highlighted the combined impact of compensation, interest payments, and transfers to statutory funds, indicating that there is no remaining budget for capital expenditure. The Ghanaian economist called for a wider conversation on wages and productivity across both the public and private sectors.
He noted that the government's 2027 budget aimed to promote growth, productivity, and job creation, with the intention of establishing quality employment that can support sustainable wages.
Dr Acheampong argued that for lasting improvements in living standards, wage increases must be accompanied by stable prices, a stronger economy, dependable public services, and increased job opportunities. He suggested that the worth of a pay raise depends on the economic circumstances surrounding it. According to Dr Acheampong, if the economy is stable, even a modest pay increase of 5% would be preferable to a substantial 30% rise in an environment of rampant inflation.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
