President John Mahama has indicated he will not authorise any expenditure on wages not provided for in the budget for both workers and Article 72 office holders.
He said he will hold on to this commitment and face any likely political consequences that may come as a result of this decision.
The President said this when he addressed members of the Ghana Registered Midwives Association, GRWA at the launch of their 80th anniversary in Accra.
The president’s comments come a week after doctors declared a strike over the absence of better conditions of service. They are threatening to resign en masse if their demands are not meant.
John Mahama observed that the demands by the Ghana Medical Association will adversely affect the Single Spine Pay Policy and appealed to them not to derail the gains made to achieve fiscal discipline.
He said any unbudgeted payment made to the doctors will open the floodgates for others in the health sector to make demands that will lead to distortions in the Single Spine Salary Structure.
He has, therefore, advised the striking doctors to return to the negotiating table and complete discussions with government and the Fair Wages Commission on better conditions of service.
Part of their demands included 40% of basic salaries as accommodation allowance per month, 20 percent as core duty facilitation allowance, 30% clothing allowance, 20% maintenance allowance, 20% utility allowance, 50% as professional allowance and 25% special risk allowance and vehicle tax exemption to doctors.
The proposal has been condemned severally by government spokespersons some of whom have described the demands as outrageous.
With the country now under an IMF supervision, the president said he will not make payments that will further raise Ghana’s budget deficit.
“Any agreement that are reached in respect of allowances or conditions of services would have to be appropriately captured in the budget.
“And i want to say for emphasis i will not authorize any expenditure on wages and compensation not provided for in the budget.
“Fiscal discipline requires that not a single pesewa is spent on remuneration outside what has been budgeted for and this goes for both Article 71 Office holders and those on the single spine.
“It goes for the president as well as the lowest public sector employee. I am determined to hold the line no matter the political cost,” he said.
