Akufo-Addo’s audacious spending led to employment freeze – Mahama

The former President cautioned fresh graduates to pursue entrepreneurship or go to the private sector for employment as the future appears dark with the current administration in office. He made this statement while speaking at the 13th Congregation of the Accra Business School on Saturday.

“Unfortunately, political appointees who mismanaged the affairs of the state-owned enterprises have destroyed parastatals that were booming a few years ago. These limitations increase the public sector’s capacity for hiring.

“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, amortization and interest payments consumed the rest of our taxes,” Mahama said.

The government was obligated to issue a hiring moratorium or ban this year due to the situation, it is stated. Because of this, your situation is pretty grave. Unfortunately, the private business environment is currently in a very bad shape as a result of government mismanagement and careless spending during the past five years.

As the nation prepares for a bailout from the International Monetary Fund, Mr. Mahama makes these remarks in response to the government’s announcement of a hiring freeze for the public and civil service beginning in January 2023. This announcement was made as part of cabinet directives for expenditure rationalization in the 2023 Budget.

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