President John Dramani Mahama has described Ghana’s current economic situation as a “crime scene,” attributing it to what he calls the reckless financial mismanagement of the previous administration.

Speaking to Organised Labour in Accra on Thursday, February 20, 2025, President Mahama did not hold back in his assessment of the country’s economic challenges, lamenting the severe financial strain left behind by the previous government.

“Comrades, we know we are your natural allies, we have worked together for many years. One thing that is a cardinal principle for us is to tell the truth at all times. We all knew that the economy was in crisis, but some of the things I am discovering myself have been a criminal handling of our economy. Ghana is a crime scene because how a government can be so reckless, I can’t understand it,” he stated.

He warned that the country had limited options and that continuing on the same economic trajectory could lead to a complete collapse.

“But we are faced with a reality, our options are very few. We can behave like the ostrich and hide our heads in the sand and let the economy crash, but then what effect will it have on Ghanaian households and everybody?”

Expenditure cuts and public sacrifice

In response to the economic crisis, President Mahama has directed the Finance Minister, Dr Cassiel Ato Forson, to introduce drastic expenditure cuts, including within the Office of Government Machinery.

“I have told the Finance Minister to cut expenditure as much as he likes, even we ourselves in government, cut as much of our budget as you like, because we all must make those sacrifices,” he said.

He acknowledged the growing public distrust in politicians, arguing that the perception of leaders living in luxury while ordinary citizens struggle must change.

“A certain distrust for the political class has arisen because it is like when everybody else is tightening their belts, the political class is loosening itself. I want to assure you that we are all going to tighten our belts, and there will be no wasteful expenditure.”

Labour engagement and salary adjustment

President Mahama’s engagement with Organised Labour came at a time when his government had approved a 10 per cent salary increase for public sector workers under the Single Spine Salary Structure (SSSS) for 2025.

The agreement, signed on February 20, 2025, between the government and Organised Labour, will take effect from January to December 2025. The 10 per cent salary adjustment follows a 23 per cent increase in 2024, which was implemented to cushion workers against economic hardship.

Mahama appealed to workers to moderate their demands this year, promising that once the economy stabilises, they would receive greater benefits.

“I want to appeal to you that let’s temper our demands for this year, and once we get out of the woods… we will share bigger things,” he assured.

Meanwhile, the Minister for Employment and Labour Relations, Dr Abdul-Rashid Pelpuo, announced an increase in the national daily minimum wage by 10% over the 2024 rate, bringing it to GHS 19.97.

“The effective date for the implementation of the 2025 minimum wage shall be the first of March 2025. All establishments, institutions or organisations whose daily minimum wages are below the new wage should adjust accordingly,” he stated.

With the economy facing significant difficulties, Mahama’s remarks signal his administration’s commitment to fiscal discipline and a shared responsibility in reviving the nation’s financial health.