Ghana Labour Minister Warns Budget Stability at Risk
Ghana's Labour Minister Dr Rashid Pelpuo has issued a stern warning that coordinated action between the Public Utilities Regulatory Commission (PURC) and organized labour is essential to prevent destabilizing the 2026 national budget.
Speaking on Joy News' PM Express on December 9, Dr Pelpuo emphasized the critical importance of maintaining fiscal discipline and avoiding hasty decisions that could undermine carefully planned government expenditures.
Government Monitoring Situation Closely
"Government is very curious about what is going to happen. We are watching, and we are speaking to PURC, we are speaking to labour as well, and we want to make sure a close understanding of what has happened," Dr Pelpuo stated, demonstrating the administration's commitment to responsible governance.
The minister stressed that while government remains committed to honoring promises to workers, all parties must engage constructively to maintain economic stability. He warned that post-budget modifications could trigger significant long-term consequences for the nation's fiscal framework.
Fiscal Responsibility Takes Priority
Dr Pelpuo highlighted the delicate balance between worker compensation and government revenue, questioning whether spending 47% of total revenue on compensation for less than one million workers should increase to 50% or even 65%. This pragmatic approach underscores the need for sustainable economic policies rather than populist spending.
"Government's intervention will have a long-term effect. Changing figures there will have a consequence of having a total effect on the figures that we put out already," he explained, demonstrating fiscal prudence.
Workers Show Economic Understanding
The Labour Minister praised workers for their mature understanding of Ghana's economic challenges, noting their willingness to make necessary sacrifices for national stability. "I've always been lucky to see that labour not just want to walk along, but also are willing to sacrifice a little," he said.
This recognition of worker responsibility contrasts sharply with the confrontational approaches often seen in other jurisdictions where unions prioritize immediate gains over long-term economic health.
Measured Approach to Tariff Adjustments
Addressing recent tariff increases, Dr Pelpuo emphasized that the 9.8% adjustment resulted from careful consideration of multiple economic indicators, not arbitrary decision-making. He stressed that government intervention must consider total economic effects rather than isolated impacts.
"The negotiation that went on, including the influence of PURC, resulted in the 9.8% which enabled them to come to reality and find what we presented today," he concluded, highlighting the importance of evidence-based policy making over emotional reactions.