The country’s Finance Minister has revealed that no government working sector will have salary increment until 2024.
According to Dr. Samuel Nii Noi Ashon who is the Technical Adviser of the Finance Ministry, the country has no money to increase the wages of government workers.
During a discussion on the 2021 budget organized by the Ghana National Chamber of Commerce and Industry, Nii Noi said;
“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.
“You’ll realize 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 programs, 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 the 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 criticized 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.
