Cutting Number of Ministers Alone Won’t Fix Ghana’s Economy

The announcement by Ghana’s new president to set up a lean government with only 60 ministers has been met with applause. The number of ministries has been reduced to 23, and this would mark one of the smallest cabinets in Ghana since independence. On paper, this move reflects progress, and I applaud the intent. But let me be clear—merely cutting the number of ministers is not the silver bullet to reducing government expenditure in a struggling economy like ours.

Here’s why we need to critically evaluate this approach and consider comprehensive solutions.

The Cost Equation: It’s More Than Just Numbers

Reducing the number of ministers is symbolic, but the actual cost savings may be far less impactful than we assume. Let’s break this down with a simple calculation.

Assume each minister earns an annual salary of GHS 120,000, including benefits. With 60 ministers, the total annual expenditure is: GHS 7.2 million

If the previous government had 110 ministers, the annual expenditure would have been:GHS 13.2 million

The reduction saves: GHS 6.0 million

While this is significant, it’s a drop in the ocean compared to Ghana’s overall government expenditure, which exceeds GHS 130 billion annually. The savings amount to a paltry 0.005% of GDP.

Clearly, cutting ministerial positions alone is insufficient to address the economic challenges.

Lessons from Other Countries

Countries that have successfully reduced government expenditure adopted multi-faceted strategies beyond merely downsizing cabinets. Take Rwanda, for example. Under President Paul Kagame, the government focused on digitizing public services to reduce bureaucratic overheads. This move streamlined operations, saving millions of dollars annually.

Similarly, Estonia, often referred to as the world’s most advanced digital society, eliminated layers of government inefficiency by implementing e-governance systems. These systems reduced reliance on physical offices and manual processes, cutting costs significantly.

Both countries demonstrate that a lean government is not just about fewer personnel but about efficiency and innovation.

Hidden Costs of a Large Government

Even with fewer ministers, Ghana’s government remains burdened by high administrative costs. Consider the entourage of special assistants, vehicles, travel allowances, and office expenses associated with each ministerial position. Cutting ministers without addressing these systemic inefficiencies is akin to mopping the floor while the tap is still running.

For instance, if each minister has three special assistants earning GHS 60,000 annually, the cost per minister rises by: GHS180,000

For 60 ministers, this adds: GHS10.8 million.

Thus, the total cost, including salaries for ministers and assistants, balloons to: GHS 18 million

Reducing the number of ministers while retaining high auxiliary costs does little to ease the financial strain.

Policy recommendations

To address Ghana’s economic challenges, several critical actions must be taken. First, streamlining public sector salaries is essential, as the public wage bill constitutes a significant portion of government expenditure. A thorough review of salary structures and benefits is needed to promote equity and ensure long-term sustainability. Additionally, digitization and e-governance present a powerful opportunity to reduce costs and improve efficiency. By automating systems such as land registration, tax payments, and business licensing, the government can curb corruption and enhance service delivery.

Audit and accountability measures should also be prioritized. Performance audits of ministries and agencies can uncover redundancies, such as overlapping functions across departments. Consolidating these roles can result in substantial savings. Furthermore, non-essential expenditures, including extravagant government conferences, luxury vehicles, and excessive foreign travel, must be curtailed to minimize waste. Lastly, strengthening revenue mobilization is crucial. Closing gaps in revenue collection through technological solutions can enhance tax compliance and significantly reduce evasion, providing the government with the resources needed for national development.

The Role of Citizens

As citizens, we must hold our leaders accountable for their promises. It is not enough to celebrate a reduction in ministerial numbers without asking hard questions about the broader picture. Are there measurable cost savings? Are these savings being redirected to critical areas like education, healthcare, and infrastructure?

Beyond Symbolism

While reducing the size of government is commendable, it is not a panacea. True fiscal discipline requires systemic changes that address inefficiencies and wastage at all levels. Ghana’s economic recovery depends on bold, innovative measures, not cosmetic adjustments.

Let’s aim for a government that is not just smaller but smarter. Because in the end, it’s not about the number of ministers but the quality of governance and the judicious use of resources that will determine our nation’s success.

If you enjoyed this article, buy me a coffee, or leave your thoughts in the comments section below.