Mounting public sector salaries threaten Ghana's economic stability – Accountant-General

The Controller and Accountant-General, Kwasi Agyei, has raised concerns about the growing share of public sector salaries in Ghana’s domestic revenue, warning that the situation poses a serious threat to fiscal sustainability.

According to him, nearly 60 percent of the nation’s revenue is consumed by public sector wages.

A trend that is creating a crowding-out effect, where government spending restricts private sector investment and limits consumption.

Speaking at a media briefing organised by the African Association of Accountants General (AAAG) in Accra, Agyei said this imbalance leaves little room for other essential government expenditures.

“When you calculate all the revenue inflows and take an average, between 57 to 58 percent goes directly into salary payments. This is a threat to fiscal sustainability,” he stated.

He further explained that such disproportionate allocations are preventing the government from investing in other priority areas.

“It means nearly 60 percent of our revenue is used solely for salaries. This creates a crowding-out effect, there’s no space left for other prioritised government expenditures,” he said.

Agyei stressed the need for urgent reforms to ensure a more balanced and sustainable allocation of public resources.

SA/MA

How Virtual Reality is enhancing business and customer experience