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Economy

Govt payroll records 700,000 workers

The number of employees in the public service has reached 700,000, Government spokesman on Finance and Economy, Mr. Kwaku Kwarteng has disclosed. He said government is worried about the numbers due to the demand on the wage-bill. Even though he did not compare the number to previous years in the interview with the B&FT, he pointed out that about 300,000, representing 42.9 percent of the numbers are evaluated as redundant. "Government has not implemented any drastic measures because of the social dimensions, but it is part of the reasons why the Ministry of Public Sector Reform was created and entrusted with the responsibility to bring to bear sanity in the public service," he said. Mr. Kwarteng blamed the situation on lack of collaboration among agencies in the service and government's weak capacity in monitoring and regulating effectively what goes on in every ministry, department or agency. The wage-bill component of government total expenditure in 2001 was GH¢261.51 million or 20.01 percent. It increased nominally to GH¢1,137.1 million which is 26.3 percent of total expenditure in 2006. Provisional results pegged last year's outturn at GH¢1,376.8 million, representing 24.3 percent of total government expenditure. Government however hopes to bring down the share of the wage-bill further to 22.0 percent by the end of this year with an absolute target of GH¢1 ,559.9 million. Economists that shared comments with B&FT identified technological and industrial under-development and increasing wealth gap between the rich and the poor as part of the causes of the pressure on the public service. One economic expert advised, "collaborative initiatives between government and the private sector that induce quick industrial growth are necessary.” Policies and regulations that ensure income security in the private sector must be strengthened and new ones initiated where necessary in order to undermine all forms of marginalization and victimization in private sector employment relationships. Source: B&FT

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