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'No freeze in salary hikes but bear with us in these challenging times' – Akufo-Addo to workers

Akufo Addo 24th Address 

Leader of Ghana, Nana Addo Dankwa Akufo-Addo 

President Nana Addo Dankwa Akufo-Addo has said his administration isn't freezing pay climbs for public area laborers for the following four years. 

Talking at the eleventh quadrennial representatives' congress of the Trades Union Congress (TUC) at Ejisu in the Ashanti Region the subject: '75 years of TUC: Building a more grounded association in a difficult universe of work', the President said: "Let me emphasize: the compensation increase for public area laborers has not been frozen for the following four years". 

"He noted, in any case, that "the reality of the situation is that we are not in ordinary occasions and I appeal to all Ghanaians, including coordinated work, to help the public authority in this undertaking to have reconstruct our public accounts and economy". 

The President clarified: "We need to assemble extra assets to cater for the new difficulties standing up to us while meeting other legal prerequisites". 

"I, hence, ask every Ghanaian specialist, to hold on for the public authority in these surprising and rather testing times. I'm certain that sooner, as opposed to later, and together we can make the upbeat, reformist and prosperous country we as a whole craving", he said. 

As indicated by him, "Coronavirus brought about an extreme stoppage in financial action and a tremendous drop in homegrown income joined with the sharp and [unparalleled] climb in COVID-19-related use". 

"In aggregate, this uncommon emergency, prompted an abrupt deficiency in government incomes adding up to some GHS13.6 billion and a surprising and unavoidable ascent in consumption of some GHS11.7 billion", he noted. 

A week ago, the Technical Adviser at the Ministry of Finance, Dr Samuel Nii Noi Ashong, said the public authority can't offer tremendous compensation increments to public area laborers for the following not many years. 

During a conversation on the 2021 spending plan coordinated by the Ghana National Chamber of Commerce and Industry (GNCCI), Dr Ashong said: "In the event that you take a gander at the spending plan, COVID-19 isn't required to decrease until the finish of 2023 and we're all appearing to take up some slack for some time and individuals ought not expect tremendous pay expansions over the span of the following not many years. This is on the grounds that we don't have cash to pay for it". 

"You'll understand that among wages and pay for workers and unrestricted homegrown incomes, in the event that you net off every one of the ordered exchanges which are legally necessary, discuss GETFund moves, National Health Insurance, District Assemblies Common Fund (DACF), the rest which is left isn't sufficient to pay for wages and compensations, products and administration, social intercession programs, that partition alone isn't sufficient to pay for even wages and pay rates," he said. 

He said if the public authority were to oblige every one of those requests, it "will be left with 40% strapped and government would need to proceed to acquire to pay for that extra 40% in addition to merchandise and enterprises and different responsibilities." 

"It's anything but a blushing picture and we should consider a spade a spade thus when individuals go on about saying we needn't bother with the duties and government should give various stuff, actually we don't have the cash", Dr Ashong added. 

The public authority of Ghana's absolute use (counting leeway of back payments) is projected at GHS113,750 million, comparable to 26.2 percent of GDP for 2021, overseer Finance Minister Osei Kyei-Mensah-Bonsu told Parliament on Friday, 12 March 2021 when he conveyed the current year's financial plan. 

The sum "addresses a development of 13.7 percent over the outturn of GHS100,052 million recorded in 2020". 

"Mr Speaker, wages and pay rates are projected to add up to GHS25,799 million and establish 22.7 percent of the absolute use (counting unpaid debts freedom) for 2021", the Minister of Parliamentary Affairs said. 

As a level of GDP, the pay bill is projected to be 5.9 percent in 2021 contrasted with the 6.5 percent recorded in 2020. 

The Suame MP said the utilization of merchandise and ventures is likewise projected at GHS5,967 million or 1.4% of GDP. 

It addresses 5.2 percent of the projected absolute consumption (counting rrears leeway). 

Likewise, he noted, interest installments are projected at GHS35,864 million, comparable to 8.3 percent of GDP in 2021. 

"Of this sum, homegrown interest installments will establish about 79.1 percent and sum to GHS28,368 million. Moves to legal assets just as any remaining reserved assets are assessed at GHS18,081 million (4.2% of GDP), addressing 52.2 percent development over the recorded outturn for 2020", point by point. 

Capital use is projected at GHS11,423 million (2.6% of GDP) in 2021, a decrease of 5.5 percent over the 2020 outturn, 

"Of this sum, homegrown financed capital use is assessed at GHS3,310 million (0.8% of GDP)", the legislator said. 

Further, a measure of GHS8,112 million has been assessed for unfamiliar financed capital use and this will be subsidized by a mix of task awards and advances. 

On spending adjusts and financing activities for 2021, Mr Kkyei-Mensah-Bonsu said dependent on the assessments for complete income and awards and all out consumption, the 2021 monetary tasks will bring about a by and large monetary shortage of GHS41,298 million, identical to 9.5 percent of GDP. 

"Mr Speaker, financing of the monetary shortfall will come from both homegrown and unfamiliar sources", he told Parliament, adding: "Net homegrown financing will add up to GHS25,424 million (5.9% of GDP) while net unfamiliar financing will add up to GHS15,870 million (3.7% of GDP) and will incorporate an arranged worldwide capital market program to raise up to US$5 billion, of which US$1.5 billion will be utilized to help the execution of the 2021 spending plan and the rest for obligation the executives". 

"Mr Speaker, a comparing Primary shortage identical to 1.3 percent of GDP, is additionally anticipated for the year".

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