Fresh figures on government compensation spending have ignited debate over the fiscal impact of President John Dramani Mahama’s pledge to run a leaner administration, as personnel costs continue to rise despite a reduction in the number of ministers.
Available data show that compensation expenditure has increased consistently over the past three years. In 2024, government spending on compensation amounted to GH¢63.6 billion. This rose to GH¢76.6 billion in 2025, with a further GH¢90.7 billion earmarked for 2026. The steady increase places total compensation under the current administration at about GH¢91 billion.
The figures have drawn attention because they appear to contrast with the government’s assertion that cutting down the size of government would translate into measurable savings. While the administration maintains that fewer ministers and political appointees have reduced costs at the top, the overall wage bill suggests that personnel-related expenditure across the public sector continues to expand.
Analysts say the trend raises broader questions about the structure of public sector compensation and whether savings from political appointments are being offset by increases elsewhere, such as salaries, allowances, or new hires.
The debate has also been sharpened by comparisons with the previous Akufo-Addo administration, which was often criticised for running a large government. Compensation spending during that period has been estimated at around GH¢60 billion over a similar timeframe.
As discussions around fiscal discipline intensify, the rising compensation figures are likely to fuel further scrutiny of how government cost-cutting measures are being implemented and whether the promised benefits of a leaner administration are being fully realised.
