Government says it has begun settling all arrears under the Single Spine Salary Policy to allow for full-scale implementation of the policy from 2015.
Seth Terkper, Finance Minister, who disclosed this to journalists in Accra recently, said the move would address the demands by different labour groups.
The single spine pay policy started about four years ago, but Government has been saddled with challenges, which mainly border on claims that the policy was causing distortions.
Mr Terkper said Government had cleared almost all the arrears estimated at GH₵3 billion.
The government also noted that some demands by the workers union were not included in the initial arrangement of the policy.
Government is expected to miss its budget deficit target for this year because over the last couple of years, it has been faced with a lot of problems relating to the SSSS.
At its just-ended 10-day meeting with the IMF, Government was urged to ensure a reduction in tax exemptions, strengthen revenue administration and expand well-targeted social protection programmes over a three-year period.
Other areas include the high public sector wage costs and the removal of petroleum subsidies.
Mr. Terkper was confident government�s recourse to the IMF programme could help the country deal with further economic problems.
Fitch, the renowned global rating agency, in its latest report, said Ghana would not be able to service its debt, adding that the target to reduce the budget deficit would not be attained.
However, Mr Terkper indicated that government�s new engagement with the IMF would yield positive results despite criticism by some persons.
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