Former President John Dramani Mahama has bewailed the decision by government to freeze public sector hiring will worsen the plight of graduates.
According to the former president, government came to this decision after its reckless spending and mismanagement of the economy.
Finance Minister, Ken Ofori-Atta disclosed in the 2023 budget statement the decision by government to freeze hiring in the public sector effective January 2023 if parliament approves the budget.
Speaking at the 13th Congregation of the Accra Business School on Saturday, December 3, 2022 Mr. Mahama said “Unfortunately, parastatals that were thriving a few years ago have been run into the ground by political appointees who have mismanaged the affairs of the state-owned enterprises. These constraints further the ability of the public sector to employ.
“Let me put our situation in a better context. Compensation cost for 2022 was estimated at 55.3 percent of tax revenue, which means off all the taxes we collect we spend 55.3 percent to pay wages and salaries for the public sector alone, amortisation and interest payments consumed the rest of our taxes,” the former president said.
He added “situation has compelled the government this year to announce a freeze or a ban on public-sector employment. This makes the situation rather dire for you…unfortunately due to mismanagement and reckless expenditure by the government over the last five years, the private business environment is also in a very poor state today.”
Credit: 3 news