Professor Stephen Adei, a former Rector at the Ghana Institute of Management and Public Administration (GIMPA), has revealed that Ghanaians shouldn’t expect that the cut in salaries of government appointees by President Akufo-Addo will solve the current problems facing the country.
He indicated that the move by government simply portrays its leadership virtues and its realization of the challenges the country is facing. Prof Adei intimated that to address the challenges, ample revenue is required. Following this, Prof Adei requested the President to find ways of “cutting expenditure, increase revenue” and cutting down the size of his government as a way of saving money.
“Two weeks ago, I said that the executive, parliament should cut their emoluments by 25 per cent. Let us get it right, even if they do; it is a small amount. It is not going to save us from this situation but it is a leadership example. You are sending the message to the people that we are in difficulty, people are suffering and we want to suffer with you. So that hopefully in a year or a year and a half, we will all come out. So, don’t let anybody think that when they cut these salaries then the problem is solved all together because we are talking about half a billion when we need billions”.Professor Stephen Adei
His comments followed President Akufo-Addo’s decision to reduce the salaries of all his appointees by up to 30 percent.
Prof Adei emphasized that even though the e-levy has become a controversial topic, he reckoned that “we should go for the E-levy”, as it is a tax which is needed now to save Ghana from its current situation. The reason, he explained, is that there are very limited avenue in the short-term to raise revenue.
“If you and I don’t support the government at this stage, we will pay it through the other way – falling Cedi, rising inflation. So, people don’t realize when they say they won’t pay the E-levy, you will end up paying”.Professor Stephen Adei
Government to cut appointees’ salary by 30%
Prior to this, President Akufo-Addo, on March 22, 2022, revealed that the reduction in the salaries of his appointees is one of the measures introduced by the government to deal with the economic problems facing the country at the moment.
The President assured the country that the Minister of Finance, Ken Ofori Atta, is going to have a major engagement with the nation today, March 24, 2022, where he will be announcing the measures that have been taken by the government to tackle the economic challenges facing the country at the moment.
He noted that it is no secret that the country’s economy is going through difficult times. President Akufo-Addo explained that what the country is currently experiencing is apparent in many other parts of the world but that doesn’t therefore mean that “government is impotent” in trying to find solutions.
Reacting to the President’s decision, the Chairman of the Council of State, Nana Otuo Siriboe II, expressed that over the past few weeks, the Council has been deliberating on the current economic conditions of the country and have been collecting views with the intent of sharing them with the President. Following this, he expressed gratitude over the decision by the President to reduce some of the emoluments and allowances of the cabinet.
“Mr President, in tandem with your decision, we as Council of State, had also decided that we will reduce our monthly allowances by 20 per cent until the end of this year”.Nana Otuo Siriboe II