March 24, (THEWILL) – The Ghanaian government has reduced by 30 percent, the salaries of its appointees.
The development followed series of strong measures taken to tackle the increasing economic hardship in the country as well as means to protect social interventions such as the School Feeding Programme.
Salaries of ministers, heads of state enterprises as well as heads of municipal and district assemblies will all be affected.
Disclosing the measures, The Presidency in a tweet, said, all measures have been approved by Ghanaian President, Nana Akufo-Addo.
Other steps taken include the reopening of land borders in two weeks, which have remained shut since the start of the COVID-19 pandemic in 2020.
Ghana’s central bank also raised policy rate by 250 basis points to 17 percent; this means the cost of borrowing will shoot up.
Additionally, the government will inject $2 billion into the economy to help stabilise the cedi (Ghana’s currency), which has witnessed drastic fall been in value to the dollar and other international currencies of trade in the past few months.
Ghana’s finance Minister, Ken Ofori-Attais, is expected to address and explain in detail the measures tailored to mitigate the current economic challenges and other issues on Thursday.
Ghana’s Council of State has also taken steps to cut down members’ monthly allowances by 20 percent for the rest of the year.
Nana Otuo Serebour II, chairman of the Council said: “This move is our way of contributing our widow’s efforts towards economic recovery.”
Ghana’s current public debt stock stands at GH¢341.8 billion with a corresponding debt to GDP ratio of more than 77% as of September ending 2021.
This implies each of the country’s 30.8 million population owes approximately GH¢11,000 if shared amongst them.
Responding to the country’s debt stock the former Board Chairman of the Ghana Revenue Authority (GRA), Professor Adei, expressed support for a reduction in the country’s expenditure.
“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”, Adei advised.
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