Akoto Osei is wrong. I have followed numerous discussions concerning the relationship between Ghanas wage bill and total Government revenue. Akoto Osei suggests that Government should suspend further payments on the SSSS and launch a policy of retrenchment in the Public sector. Infact as a politician I find his comments to be politically incorrect. But my reaction to Akoto Osei will not be informed by political inclination. The SSSS took effect on January 2010 and over the period, about 98% of public sector workers have been migrated onto the new policy. Government indicates that 70% of total revenue goes into the payment of public sector wages. This figure amounts to 9billion Ghc at current values. What is freed for development expediture is simply woefully inadequate. Given the foregoing I disagree with anybody who thinks along Akotos thoughts on this matter. I will point to a few issues. First of all let us consider Government revenue. Without focussing on other sources of revenue, we can talk about tax revenue. The numbers points to the fact that about six (6 ) million Ghanaians are supposed to be paying taxes.Unfortunately just 2 million of this number pay taxes. We have a large informal sector some of whom make money far more than the salary earned by top ranked public sector workers without paying any form of tax. We should ask for the roping of this people into the tax net. Korlebu Teaching Hospital has uncovered more than 1000 ghost names on its payroll. It is a fact that most of our MMDAs are replete with ghost names. What do we do about it? Public sector procurement is a major source of corruption in our country. Inflated contracts, sole sourcing and revenue leakages in the public sector. What can we do to plug these holes? Now cost of living. Over the last 4years of implementing the SSSS, cost of electricity has gone up by more than 500%. Water has gone up by more than 300%. Petroleum prices have gone up by more than 300%. These skyrocketing increases have cascaded on the prices of food commodies, rent, school fees and everything else in the economy. Inflation is in the neighbourhood of 14% and the Ghana Cedi has suffered its worst bullishing in years. Without SSSS, Whether is GUSS, CAP 30 or any other Salary Scheme, salary increases over the period would have been more than justified. What would have been the difference between Salary increases under Single Spine and Salary increases without Single Spine given the economic situation. Under what Scheme are our MPs and Ministers paid their salaries? Is that also justified? Without addressing the first problems first, it will be lame for anybody to suggest that SSSS is the cause of all our problems. Let Akoto come again please.
Posted on: Wed, 12 Mar 2014 08:26:11 +0000
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