Percentage Salary Increase Used To Prepare 2023 Budget By The Government And IMF

Percentage Salary Increase Used To Prepare 2023 Budget By The Government And IMF

Table of Contents

Hard fact: In the absence of a negotiated percentage of which public sector salaries should be increased, we try to guide the public on how to extrapolate the percentage used in preparing the annual budget that will be presented today.

Highlights

1. In an attempt to do what was never done before Government of Ghana called for a tripartite committee meeting to start negotiating the percentage salary increase for public sector workers in less than a week to the presentation of the 2023 budget on the 24th November 2022

2. The meeting which officially started on the 17th was adjourned to the following day 18th and later to Monday 21st November which never came off without a public explanation

3. The adjourned meeting eventually came off on the Tuesday 22nd and Wednesday 23rd which both ended inconclusively and finally adjourned indefinitely since the budget will be presented anyway on Thursday 24th November 2023

4. However, the budget was already prepared long before the start of the base pay salary negotiation meeting was called with an assumed percentage by the government under the watch of the International Monetary Fund (IMF) which is about to be disclosed

5. Though the exact percentage salary increment is not put out publicly, it can easily be extracted from the budget about to be read.

6. The easy way to estimate the percentage salary increment used to prepare the 2023 budget is to look out the salary/ remuneration for the 2022 mid-year budget and the 2023 budget to do the extrapolations.

7. First, divide the salary and remuneration for 2023 under a particular government ministry/ departments by two (2) to get a half year amount to be equivalent to the half year of 2022

8. Subtract the 2022 half year amount from the 2023 amount and use the difference to calculate the percentage increase using the 2022 half year amount as the base.

9. Perform the process for two or three ministries/ departments (G.E.S, G.H.S, Local government workers etc) to appreciate the slight differences in the percentages for the various ministries/ departments

10. The premise of this extrapolation is that, no major recruitment has taken place after the midyear budget to warrant any fundamental change in the base amount for midyear budget

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11. It must also be noted that, payment of arrears after midyear budget and/ or arrears to be paid 2023 could make the percentage salary increase that is obtained deviate from the actual percentage used. However, we do not expect the deviation to be that significant from what was used in preparing the budget.

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