Mr. Kweku Agyeman-Manu, a former deputy Finance Minister says the governing National Democratic Congress (NDC) rushed in implementing the single spine pay policy which is currently taking as huge as 70 percent of government revenue.
According to Mr. Agyeman-Manu, the decision to implement Single Spine Salary Structure (SSSS) was initiated by the New Patriotic Party administration. He said the decision to implement the SSSS was ill-advised, adding that, the current administration lacked ideas in reversing the negative impact the policy is having on the economy.
Speaking Thursday on Badwam on Adom, the Member of Parliament for Dormaa West in the Bono Ahafo Region, also denied the claim that the pay policy was endorsed in 2009 by then President Agyekum Kufour shortly before exiting office.
According to the Chairman for the Public Accounts Committee of Parliament, president Kufuor rather endorsed a 34 percent increment in salaries and not the SSSS since work on the latter was incomplete at the time Mr. Kufuor exited office.
He was reacting to the assertion by the Finance Minister, Seth Terkper on Wendesday, during the meet the press series to the effect that, the poor state of the country's economy is as a result of huge wages and salaries which needed to be paid.
Mr. Terkper said the economy of Ghana is still facing liquidity challenges, with both revenue receipts and expenditure falling below their targets, nine months into the year. The only exception is compensation for workers, which has overshot its target by 2.2 per cent, Mr Terkper said.
Mr Terkper said total revenue and grants for the period amounted to GH¢11.90 billion, as against a target of GH¢14.15 billion. Although the figure was a shortfall of the target, he said it was 13 per cent higher than what was recorded for the same period last year.