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SSSS...Gov’t Should Stop Doing “Kukrukukru” With The Economy So Workers Can Stop The “Kekrekekre”   
 
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13-Nov-2013  
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Dr. Mahamudu Bawumia, 2008 Vice-Presidential candidate to Nana Akufo-Addo and former Deputy Governor of the Bank of Ghana, has stated that the blame for the current economic troubles the country is facing cannot be blamed on the implementation on the single spine scheme.

Speaking at the 1st Alhaji Aliu Mahama Memorial lecture in Accra, Dr. Bawumia took the audience at the event chaired by former President John Agyekum Kufuor through a history of economic management and performance since independence.

Touching on the unprecedented deficit recorded in 2012 and the difficulties the economy was currently facing, Dr. Bawumia said “the NDC government, in the face of growing labour unrest, has tried to blame the economic meltdown being experienced on the implementation of the Single Spine Salary System.
The refrain from Government is that wages and salaries of government workers account for over 70% of government revenue so workers should endure economic hardships or pick the next available flight out of the country. What are the facts?”

The former Deputy Governor of the Bank of Ghana proceeded to explain to the audience, why the blame for the difficulties could not be put on the single spine. He said “At the end of 2008, the Government wage bill amounted to GHC1.98 billion, representing 41.3 percent of total domestic revenue of GHC 4.8 billion and 46% of tax revenue. By the end of 2012, after 99% implementation of the single spine salary system, the government wage bill jumped by some GHC4.6 billion to GHC6.6 billion. While the government wage bill increased by some GHC4.6 billion between 2008 and 2012, total government revenue also increased from GHC4.8 billion to GHC15.5 billion over the same period. The increase in domestic revenue by GHC10.7 billion was more than twice the increase in the government wage bill. Indeed, by the end of 2012, the government wage bill following the implementation of the single spine salary system was 42.9% of total domestic revenues. This is not significantly different from the 41.3% in 2008. Furthermore, the 2013 budget forecast that the wage bill in 2013 would represent 35% of total domestic revenue by the close of the year. The current economic difficulties can therefore not be attributed to the single spine salary system which had been 99% implement at the end of 2012.“


Dr. Bawumia placed the blame squarely on the mismanagement and excesses of the NDC administration for the difficulties the economy was facing and the attendant hardships imposed on the people of Ghana.

“The acute fiscal difficulties the government is facing is directly related to the massive deficit of GHC8.7 billion (12% of GDP) incurred in 2012. This massive over expenditure has left the government cash strapped and unable to even finance statutory expenditures. Some workers have not been paid for 22 months! Mr. Chairman, I also understand five years after you and Alhaji Aliu Mahama left office, the government has still not paid you your entitlements.

Mr. Chairman, the data available therefore shows quite clearly that the blame for the current economic difficulties lies squarely in the area of government economic mismanagement and should not be blamed on the wages of workers. After all, workers did not decide to distribute V8 land cruisers and other goodies to try to win the 2012 elections, neither did workers decide on an unsustainable path of accumulation of public debt. Workers did also not make the decisions on GYEEDA, SUBAH, SADA, ISOTOFON, WAYOME, AAL, etc. In trying to reign in the fiscal deficit, government has imposed taxes on almost everything, including condoms and cutlasses and I am sure more taxes are coming in the budget to be read next week. Government has also increased utility tariffs, water tariffs, petroleum prices etc. Unfortunately, when as a result of poor economic management workers demand higher salaries, some politicians conveniently turn around to accuse them of being unpatriotic or greedy. After the government does the “kukrukukru” with the economy they do not want the workers to do the “kekrekekre” to protect their standard of living!”, he said.
 
 
Source: Peacefmonline.com/Ghana
 
 

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