Finance Minister Dr Cassiel Ato Forson has revealed that compensation for public sector workers continues to account for the largest share of government expenditure, significantly limiting spending in other critical areas.

He made the remarks during a meeting with Organised Labour at Jubilee House in Accra on Tuesday, March 17, as part of ongoing consultations between the government and labour groups.

According to the Finance Minister, employee compensation currently represents 39 percent of total government expenditure, compared to 32 percent allocated to debt servicing and 29 percent to grants for other government entities.

Dr Forson noted that the size of the wage bill is creating a “crowding-out effect,” restricting the government’s ability to invest in essential sectors. He explained that while a substantial portion of resources is devoted to salaries, only three percent of expenditure goes toward goods and services, and just six percent is allocated to capital investment.

He further highlighted that social benefits account for only one percent of government spending, while statutory funds—classified as grants to other government units—make up about 24 percent. Debt servicing, he added, continues to consume a significant share at 26 percent of total expenditure.

Providing additional context, Dr Forson stated that by the end of the 2025 fiscal year, compensation spending had reached 44 percent of non-oil tax revenue, 5.6 percent of Gross Domestic Product (GDP), and 33.78 percent of overall government expenditure.

He emphasized that these figures underscore the growing fiscal pressure posed by the public sector wage bill and the need for careful expenditure management.

Government has unveiled an ambitious plan to strengthen agro-processing capacity and boost farmer productivity as part of efforts to transform Ghana’s agricultural sector into a key driver of economic growth.

Speaking at the opening of the Ghana Agrotech Fair 2026, President John Dramani Mahama said the new direction is anchored on modernising agriculture and building resilient value chains that support both farmers and agribusinesses.

“Our agenda focuses on strengthening agricultural value chains, expanding agro-processing capacity, reducing post-harvest losses, improving market access, increasing farmer productivity and incomes, and positioning Ghanaian agribusiness to compete globally,” he stated.

President Mahama emphasized that agriculture must no longer be treated as a subsistence activity but as a strategic pillar of national development.

“Agriculture must no longer be treated solely as a subsistence sector, but as a strategic pillar of national economic growth, industrial expansion and export development,” he said.

The President noted that a major component of the plan involves investing in infrastructure and services that directly support farmers. He announced government’s intention to establish Farmer Service Centres across the country to provide mechanization and extension services.

“Government intends to build 50 Farmer Service Centres nationwide in the main agricultural producing areas,” he revealed.

He added that the centres will provide critical support, including access to machinery and training.

“Farmers will receive mechanization support in terms of tractors, ploughing, harrowing, transportation of fertilizers, shellers for processing their grains, and many other services. They will also benefit from training and extension support,” President Mahama explained.

According to him, improving agro-processing is essential to reducing losses and increasing the value of agricultural produce.

“Agriculture is not merely about cultivation; it is about productivity, value addition, industrial development, jobs and exports,” he stressed.

President Mahama further highlighted the role of technology and innovation in achieving these goals, noting that modern agriculture must integrate production, processing and market access.

“The future of agriculture lies not simply in expanding acreage, but in modernizing the entire agricultural value chain—from production to processing, and from logistics to global marketing,” he added.

He also called on financial institutions and investors to support the sector, urging them to see agribusiness as a viable and scalable opportunity.

“To our financial institutions and investors, agrotech must move from an admired concept to a bankable, scalable industry,” he said.

The Ghana Agrotech Fair 2026 has brought together stakeholders across the agricultural value chain, showcasing technologies and innovations aimed at boosting efficiency, improving yields and enhancing agro-processing capabilities.

President Mahama expressed confidence that with the right investments and collaboration, Ghana can build a modern agricultural sector that creates jobs, ensures food security and drives export growth.

Ghana has set its sights on becoming a leading exporter of agricultural technology on the African continent, as President John Dramani Mahama underscored the country’s commitment to building a strong, locally driven agritech industry.

Speaking at the opening of the Ghana Agrotech Fair 2026, President Mahama said the country must move beyond reliance on imported machinery and instead invest in homegrown innovation to transform its agricultural sector.

“No nation can transform its agricultural economy while indefinitely depending on imported machinery, processing lines and technological systems at every stage of production,” he stated.

The President emphasized that supporting local manufacturers of agricultural machinery and agro-processing equipment is critical to Ghana’s long-term economic transformation.

“If Ghana is serious about agricultural transformation, we must deliberately build the capacity to design, fabricate, adapt, maintain and scale agricultural technologies locally,” he said.

According to him, this strategic shift will not only reduce import dependence but also create jobs and strengthen the country’s industrial base.

“When we support local agritech manufacturing, we are strengthening Ghana’s industrial base, creating skilled employment for our young people, and retaining greater value within our national economy,” Mahama noted.

He added that Ghana’s ambition goes beyond domestic production, positioning the country as a key player in the regional agritech market.

“It makes us position Ghana not only as a consumer of agricultural technology, but as a producer and exporter of it across the African continent,” he stressed.

President Mahama highlighted that the focus on agritech aligns with the government’s broader economic agenda, including the Feed Ghana Programme and efforts to modernize the agricultural value chain.

“Agriculture must no longer be treated solely as a subsistence sector, but as a strategic pillar of national economic growth, industrial expansion and export development,” he said.

He further pointed out that modern agriculture must be driven by innovation, technology, and value addition across the entire production chain.

“The future of agriculture lies not simply in expanding acreage, but in modernizing the entire agricultural value chain—from the farm to the factory,” he added.

The Ghana Agrotech Fair 2026 brought together stakeholders from government, industry, research institutions and the private sector, showcasing innovations aimed at boosting productivity, reducing post-harvest losses and enhancing competitiveness.

President Mahama urged all stakeholders to play their part in achieving the country’s vision.

“To our entrepreneurs and manufacturers, continue to build and scale solutions made in Ghana, for Africa,” he said.

He also encouraged investors to take a more active role in the sector, stressing that “agrotech must move from an admired concept to a bankable, scalable industry.”