Minister of Finance, Dr Cassiel Ato Forson, has revealed that compensation for Ghana’s public sector employees represents the largest portion of government expenditure, placing significant pressure on the national budget.

Speaking during a dialogue with organised labour and government officials on Tuesday, March 17, Dr Forson said the high wage bill, combined with debt servicing and grants to other government units, is a major structural challenge to Ghana’s economy

“Mr President, compensation of Ghana's employees is currently the largest share of government's expenditure.

Employee compensation currently accounts for 39% of total government expenditure, surpassing debt service at 32% and grants to other government units at 29%,” he said.

Dr. Forson explained that this “crowding effect” limits resources available for operational expenses, capital projects, social benefits, and other essential services, raising concerns about fiscal sustainability.

He stressed that while fair remuneration is a constitutional right under Article 24 (1), the government must carefully manage public sector wages to maintain economic stability.

The Finance Minister called on all stakeholders, including organised labour, to collaborate on strategies that balance fair compensation with sustainable fiscal management.