Finance Minister, Dr Cassiel Ato Forson, has warned that Ghana’s public sector wage bill for 2025 has exceeded the recommended threshold set by the Economic Community of West African States (ECOWAS), raising concerns over fiscal sustainability.
Speaking during a dialogue with government officials and organised labour on Tuesday, March 17, Dr. Forson revealed that the 2025 compensation budget accounted for 44% of non-oil tax revenue, 5.64% of GDP, and 33.78% of total government expenditure.
He stressed that the ECOWAS convergence criterion recommends that compensation should not exceed 35% of non-oil tax revenue, making Ghana’s 44% figure well above the regional benchmark.
“Ghana’s compensation to tax revenue ratio of 44% for 2025 is higher and way above the ECOWAS threshold of 35%. The ECOWAS convergence criteria require that compensation should not exceed 35%, but in the case of Ghana, it is 44%.”
He explained that in 2025, non-oil tax revenue stood at GH¢183 billion, including the District Assemblies Common Fund, Ghana Education Trust Fund, and NHIA levy, which amounted to GH¢55.97 billion, and debt servicing totalled GH¢ 64.3 billion.
This left only GH¢61.9 billion available for wages, yet the actual compensation bill reached GH¢78.9 billion.
However, the government’s wage bill alone amounted to GH¢78.9 billion, creating a financing gap that forced the state to borrow approximately GH¢17 billion just to meet salary obligations.
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