Minister of Finance, Dr Cassiel Ato Forson, has disclosed that wages and salaries overshot the approved compensation budget by GH¢1.3 billion in the first half of 2025.

Presenting the 2025 Mid-Year Fiscal Policy Review to Parliament on July 24, 2025, Dr Forson attributed the wage bill overrun to last-minute recruitments carried out by the previous administration in the final quarter of 2024.

These recruitments were concentrated in the education, health, and security sectors.

He further explained that ad-hoc reviews of conditions of service in previous years had disrupted the Single Spine Pay Policy, compounding the challenges in managing public sector compensation.

“To ensure fiscal sustainability, we must take firm steps to control the public wage bill. This means improving payroll oversight, streamlining staffing, and implementing structural reforms,” the statement said.

To address the situation, the government has listed some corrective measures to be implemented including:

• Conducting regular nationwide payroll audits to clean up the government payroll.

• Realigning staff from overstaffed and defunct Ministries, Departments, and Agencies (MDAs) to areas with critical staffing needs.

• Finalising steps to establish the Independent Emoluments Commission (IEC) to help reform public sector pay structures.

Dr Forson emphasised that these interventions are aimed at restoring fiscal discipline and ensuring long-term sustainability in public sector wage management.

MRA/VPO

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