Mahama Attributes Political Trust Deficit to Fiscal Disparities, Vows Austerity

Former Ghanaian President John Dramani Mahama has pinpointed fiscal hypocrisy within the political class as the root of public distrust, urging organized labor to embrace temporary sacrifices to stabilize the economy.

Speaking to union leaders in Accra on Thursday, Mahama condemned what he called a “criminal handling” of Ghana’s economy under recent administrations, framing the nation as a “crime scene” due to reckless governance.

“While ordinary citizens endure hardship, politicians have loosened their belts instead of tightening them,” Mahama asserted, referencing widespread frustration over perceived elite privilege during economic crises. His remarks come amid rising public anger over austerity measures juxtaposed with government spending. To address this, Mahama pledged to slash “wasteful expenditure” across his administration, urging labor unions to temper wage demands until economic recovery.

The appeal follows his government’s approval of a 10% salary increase for public sector workers—a figure critics argue falls short of mitigating inflation’s toll. The raise, effective January 1, marks a stark contrast to 2024’s 23% adjustment, highlighting growing fiscal constraints. Employment Minister Abdul-Rashid Pelpuo concurrently announced a 10% hike in the national daily minimum wage to 19.97 Cedis, effective March 2025, though skeptics question its adequacy amid soaring living costs.

Mahama’s proposed solution—an independent emoluments committee to standardize salaries from “the president to the ordinary laborer”—aims to curb inequality. Yet, analysts caution that such reforms risk appearing performative without transparent enforcement. His call for unity hinges on fragile trust: while labor leaders reluctantly accepted the modest raise, lingering resentment over stagnant wages and political opulence threatens to undermine solidarity.

The former president’s rhetoric underscores a broader dilemma in Ghanaian politics: balancing austerity with equitable growth. While Mahama frames belt-tightening as a collective imperative, critics argue that decades of mismanagement, not just recent policies, have eroded public faith. As inflation persists and public debt looms, his vow to “grow the economy” faces skepticism from citizens weary of unfulfilled promises. The path to shared sacrifice, it seems, remains fraught with the very disparities he now condemns.