An analysis of the personnel costs of the Bank of Ghana (BoG) from 2012 to 2022 shows that the average annual growth rate was 23.48%. This means that the BoG's personnel costs have more than quadrupled over the past 10 years.
The biggest jump in personnel costs occurred between 2015 and 2016, when they increased by 54%. The BoG's personnel costs also increased by 29% between 2021 and 2022. This was despite an increase in the number of staff by only 4. The difference in personnel costs between the two years was about GHS 360 million.
The high growth rate of BoG's personnel costs has raised concerns about the sustainability of its budget. The BoG is a public institution and If the trend of rising personnel costs continues, it could put a strain on BoG's budget and make it difficult for the institution to fulfill its mandate.
The BoG has said that it is committed to managing its personnel costs effectively. The high growth rate of the BoG's personnel costs is a matter of concern. The institution needs to find ways to control these costs without compromising its ability to fulfill its mandate.
What do you think are the reasons for the increase in personnel costs at the BoG in recent times?
Salary increment, Directors’ remuneration, Pensions or Staff Welfare?
The BoG should provide more transparency about the factors that are driving the increase in its personnel costs. This will help to allay public concerns and ensure that the institution is accountable for its spending.