Report of a planned cut in the cost government in Ghana is gaining ground as a fresh report from the West Africa country says President Nana Akufo-Addo could reduce the salaries of appointees by between 20% and 30%, according to reports by local media citing “reliable sources”.
Earlier reports in January from the former Gold Coast hinted that President Akufo-Addo has plans to cut down by 20% the budget expenditure of all Ministries, Departments and Agencies for the year 2022.
The latest news on the issue came up after the President was engaged in an emergency meeting with his cabinet ministers and members of the Economic Management Team (EMT) over the weekend.
Salaries of ministers, heads of state enterprises as well as heads of municipal and district assemblies will all be affected.
According to reports, discussions are currently ongoing and a final decision would be out by the close of Monday (21 March).
According to the sources, critical among the matters under discussion is whether to maintain the 20% cut across the board or increase it.
Ransford Gyampo, an associate professor in the political science department of the University of Ghana, had earlier in a letter requested the government to reduce the size of his government and slash appointees’ salaries by 30%.
The professor also urged Akufo-Addo to reduce his salary by 30% and “reduce or completely suspend the payment of all the allowances and per diems that are given to people who already earn huge salaries (even when reduced by 30 per cent)”.
The government had announced earlier this year that the treasury will reduce the allocation to metropolitan, municipal and district assemblies (MMDAs) for the first quarter of 2022 by roughly 20%.
“If you are exceeding your income, then you must accept to live below your income, which is the easy way, otherwise if you are earning GH¢3,000 and you are in debt of GH¢10,000 you cannot day to day spend GH¢3,000 for you to get out of the rag you will have to cut your expenditure to GH¢2,000 because you must service your debt…” Gyampo said further.