Selected Issues Papers

Public Sector Wage Bill in Mali

Author/Editor:

Youssouf Kiendrebeogo

Publication Date:

July 19, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Mali’s wage bill has soared to levels not seen since the early 1990s. This may cause considerable opportunity costs—limiting fiscal space and potentially adding to inflationary pressures—as well as adversely affect medium-term debt sustainability as it weighs heavily on the primary deficit. This SIP investigates the extent and drivers of the recent wage increases and their fiscal and economic consequences. It concludes that across-the board salary freezes may help wage growth moderation in the short term but are politically difficult to implement. Structural reforms to strengthen wage bill management are critical to preserving medium-term fiscal sustainability.

Series:

Selected Issues Paper No. 2023/056

Subject:

Civil service Expenditure Government wage bill International organization Labor Monetary policy Public sector wages Wage adjustments Wages

Frequency:

Regular