Gov’t Pays 700,000 People 52% Of Its Revenue As Salaries – John Kumah
A deputy minister for Finance, Dr. John Kumah, has detailed that government spends about 52% of its total revenue on the payments of salaries and compensation of workers.
According to the Minister, the government’s total revenue after the payment of the salaries of about 700,000 workers is 27billion, an amount that does not suffice for the country’s expenditure.
Speaking on Accra-based TV, the minister said, “GRA exceeded its revenue target for last year but the fact of the matter is that 30billion of what was collected in 2021 which is about 52.6% went into compensation or payment of worker’s salaries.”
“So if you are collecting 57billion and giving about 30billion to the workers, what is left which is about 27billion is what must take care of all other commitments of government, we are talking about interest payments and amortization which government can’t do anything about, we are talking about statutory payments which government has to pay, government flagship programs and all other government payments.”
Dr. John Kumah stated, however, “It is not that government is insensitive”, rather the nature of its expenditure and responsibility will not allow for certain expenses to be made.
The Trades Union Congress has hinted at an industrial action if government fails to adjust their salaries as soon as possible. They want government to peg their salaries at the current inflation rate of the country as prices of goods and services keep increasing.
Secretary-General of the TUC said, “We will continue to talk, we will continue to negotiate but if the dialogue fails, we are going to embark on an industrial action that has never happened in this country before.”