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Budgetary Practices in Line Ministries Need Overhaul, Study Confirms

A recent report commissioned by the Public Service Union (PSU) and prepared by consultant Malcolm Green calls for Belize’s government ministries to revamp budgeting practices to manage public sector wages sustainably and fairly.


The study, verified by PSU President Dean Flowers, highlights the fiscal strain caused by Belize’s current public wage bill, with wages projected to consume an additional 0.4% of GDP each year without reform. It points to inefficient employment budgeting, lack of procedural adherence, and irregular appointments as primary issues that increase costs and create inequities. Budget processes, the report notes, are often disregarded, with line ministries failing to prioritize staffing plans during annual budget cycles. This oversight results in numerous ad hoc requests to change staffing structures after budget approval, often bypassing established protocols.


The report further identifies significant disparities in pay scales within the public service, caused by a practice of paying employees based on academic qualifications and seniority rather than their specific job duties. This approach has led to wide pay differences among employees performing similar roles. The current pay structure, the report suggests, fails to align with market demands, and many public sector salaries are not competitive enough, causing skilled staff to leave for private sector opportunities.


To address these issues, the study recommends overhauling recruitment practices to adhere strictly to existing policies, strengthening pay and employment controls to prevent unauthorized hiring, and implementing a job-based grading system. Such a system would standardize pay according to job duties rather than individual characteristics, fostering equitable pay for similar work and opening a path for necessary pension reforms. Additionally, the study advocates for improved salary competitiveness with the private sector, a measure intended to retain skilled personnel.


This analysis by Green was conducted in the broader context of pension reform discussions between the PSU and the Government of Belize (GOB). The PSU argues that before introducing a contributory pension for public officers, there must be a comprehensive review of hiring and budgetary practices to avoid making public officers worse off. The non-contributory pension scheme, traditionally offered as a trade-off for lower public sector wages, remains a sensitive issue among public officers who see it as compensation for the sector’s long-term career stability.


PSU President Flowers underscored that any changes to the pension scheme must come with assurances that public officers will not be disadvantaged.

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