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Ghana’s public sector pay exceeds ECOWAS threshold – Finance Minister
March 17, 2026
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Ghana’s public sector pay exceeds ECOWAS threshold – Finance Minister

Money
Policy
Growth

Key Points

  • Ghana's 2025 public sector wage bill has exceeded the ECOWAS recommended threshold for fiscal sustainability.
  • Finance Minister Dr. Cassiel Ato Forson revealed the compensation budget accounts for 44% of non-oil tax revenue, significantly above the 35% ECOWAS criterion.
  • The wage bill also represents 5.64% of GDP and 33.78% of total government expenditure for 2025.
  • After statutory payments and debt servicing, only GH¢61.9 billion was available for wages from non-oil tax revenue.
  • The actual wage bill of GH¢78.9 billion created a GH¢17 billion financing gap, forcing the government to borrow to meet salary obligations.

Why This Matters

This situation underscores Ghana's ongoing fiscal sustainability challenges, as an excessive portion of non-oil tax revenue is consumed by public sector wages. The need to borrow to cover salaries further exacerbates the national debt, hindering the government's ability to invest in critical development projects and potentially impacting long-term economic stability and growth.

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