General News of 2014-03-07

Cut public sector jobs now - Akoto Osei

Ranking member for the Finance Committee of Parliament has advised government to expedite action on the redundancy phase of the public sector wage reforms.

According to Dr. Anthony Osei Akoto, the reforms include job cuts which government has not had the political will to execute.

Ghana currently spends about 70 percent of its income generated to pay government workers which accounts for a huge budget deficit.

Dr. Akoto Osei, speaking to Citi Business News, argued that government only has up to the end of this year to do it, else will face dire consequences.

“In the single spine framework, retrenchment was part of the plan, but it has not been done and if it is not done soon, politically after 2014, you have lost it. As early as possible you implement it, so people get used to it. But it looks like we have lost it,” he said.

He explained that, “it was part of the implementation plan over a five year period. As you pay more, you bring the right people. First, the ministry was supposed to do an assessment. They did not do so. First it must be done, so we know government is credible. Government projects to bring deficit to 8.5%. Right now there is nothing that shows we will get there.”

According to him, “confidence will be lost, we have been there before, and we don’t want that to happen again".

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