The Ghanaian government has appealed to striking nurses and midwives to exercise restraint and allow the implementation of their wage agreement to take effect in 2025 as it works to protect the country’s fragile fiscal consolidation efforts.
Speaking in Accra on Tuesday, Deputy Finance Minister Thomas Nyarko Ampem disclosed that the demands of the Ghana Registered Nurses and Midwives Association (GRNMA) would add more than ₵2 billion ($195 million) to the 2024 compensation budget.
The unbudgeted cost, he warned, could undermine the administration’s efforts to restore fiscal stability after a prolonged debt crisis.
“This will throw the budget and economy out of gear,” Ampem stated. “We want to appeal to nurses to agree on a road map that will help us incorporate what we can in the budget for next year.”
Over 128,000 members of the GRNMA began an indefinite strike on June 2, demanding full implementation of a collective agreement on conditions of service reached with the previous administration.
The industrial action has disrupted operations across public health facilities, further straining Ghana’s overstretched health sector.
President John Mahama, who assumed office earlier this year following his electoral victory in December, has committed to reducing the country’s fiscal deficit to 3.1% of GDP in 2025, down from 7.9% in 2024.
He also targets a primary surplus of 1.5% of GDP, a sharp reversal from the 3.9% primary deficit recorded last year.
The fiscal plan is part of broader efforts to sustain the country’s macroeconomic recovery and meet International Monetary Fund (IMF) programme benchmarks.
Any unplanned expenditure, including public sector wage hikes, risks derailing the fiscal targets and could complicate ongoing discussions with creditors under Ghana’s debt restructuring programme.
“The government is operating one of the tightest budgets ever, with significant expenditure cuts,” said Godfred Bokpin, finance lecturer at the University of Ghana Business School. “This leaves practically no room for maneuver this year.”
The Finance Ministry has reiterated its commitment to the collective agreement signed with the nurses’ union but stressed the need to align its implementation with fiscal sustainability.
Officials are working on a phased payment structure that would allow for partial implementation in the next budget cycle.
Despite ongoing appeals from the government, the leadership of the GRNMA has not yet signaled a willingness to suspend the strike. The association argues that the agreement was reached in good faith and should be honored without delay.
Observers warn that prolonged industrial action by nurses and midwives could lead to increased health emergencies and deteriorating patient outcomes across the country.
The government is expected to continue dialogue with union leaders in the coming days as it seeks a resolution that balances public sector expectations with economic realities.
Ghana’s cedi has remained relatively stable in recent months, contributing to a slowdown in inflation to a three-year low.
However, any disruption to fiscal discipline or renewed uncertainty in the public sector wage bill could reverse recent macroeconomic gains.
The Finance Ministry is expected to release a mid-year budget review in July, where updated revenue and expenditure projections may offer further insight into how the government plans to absorb new obligations.
