Ato Forson, the Finance Minister, has disclosed that public sector wages remain the largest component of government expenditure.
According to Ato Forson, the Public sector wages take 39% of Ghana’s budget.
Speaking during a dialogue with Organised Labour at the Jubilee House in Accra on Tuesday, March 17, Ato Forson stated, “Compensation of Ghana’s employees is currently the largest share of government expenditure. Of the total government expenditure, employee compensation accounts for 39%, debt service accounts for 32%, and grants to other government units account for 29%”.
“The crowding effect of compensation means that while we spend 33% of our compensation budget, our expenditure on compensation, only three per cent is used for goods and services, and capital expenditure represents only six per cent of Ghana’s expenditure.
“Social benefits only represent one per cent of government expenditure, and grants to other government units representing the statutory funds are about 24% while debt service represents 26% of our total expenditure”.
“Some key facts on the compensation issues are that at the end of the 2025 fiscal year, compensation budget accounted for 44% of non-oil tax revenue, 5.6% of GDP, and 33.78% of total expenditure,” he added.
Also, Dr Cassiel Ato Forson has announced that the government has begun steps to recruit new personnel into the public sector.
According to Ato Forson, the decision follows the government securing a GH₵ 17 billion loan to cover wages in 2025.
He explained that the planned recruitment forms part of government agreements with Organised Labour to increase workforce capacity.
Ato Forson added, “On the 2026 base pay, government committed to engage with unions on outstanding conditions of service and undertake critical recruitment into the public service, all within budget constraints. In this regard, the government has commenced processes for the recruitment of staff to the public service.
“Fair Wages and Salaries Commission has also commenced negotiations with Organised Labour on review of conditions of service and very soon will be approving them,” he said.
Meanwhile, Oliver Barker-Vormawor, the Convener of the Democracy Hub activist and lawyer, has announced plans to drag the John Mahama-led government to court over alleged crooked public sector recruitments.
The lawyer and activist highlighted that over the past few months, many people have been hired into the public sector to quietly fill roles without any advertisement of the positions.
According to Oliver Barker-Vormawor, Public sector employment cannot operate like a private favour system, adding that government jobs are paid for by the public purse and must be open to the public.
In an X post shared on Tuesday, March 10, 2026, Oliver Barker-Vormawor wrote, “Democracy Hub is considering a lawsuit against the Government over what appears to be a long entrenched practice of non-competitive recruitment across several Ministries, Departments and Agencies.
Over the past few months, consistent with historical practices, it has become increasingly clear that many people are being hired into public sector roles that were never advertised. Positions are filled quietly, sometimes after the fact, with no public notice, no opportunity for qualified people to apply, and no explanation of the criteria used in selecting those appointed”.
Oliver Barker-Vormawor further added, “Public sector employment cannot operate like a private favour system. Jobs in government are paid for by the public purse and must be open to the public. The absence of advertisement and competitive recruitment raises serious questions about fairness, transparency, and whether equal opportunity in access to public service is being respected.
Beyond the fairness issue, this also affects the quality of governance. When recruitment becomes opaque, institutions slowly lose credibility and competence. Young professionals who want to contribute to public service are shut out before they even know opportunities exist, while networks of patronage quietly take root.
The purpose of the proposed litigation would be simple: to force a clarification of the rules governing public sector recruitment and to insist that government employment follows transparent, competitive procedures consistent with constitutional principles of fairness and administrative justice”.