District Assemblies Common Fund Receives GH¢5.7bn to Boost Local Development – Finance Minister
The Government of Ghana has released GH¢987.97 million to the District Assemblies Common Fund (DACF) for the first quarter of 2025, with 80% of the amount—approximately GH¢790 million—earmarked for direct disbursement to Metropolitan, Municipal and District Assemblies (MMDAs) across the country.
This is part of a broader GH¢5.7 billion allocation for the year aimed at revamping local governance and economic development, Finance Minister Dr. Cassiel Ato Forson told Parliament on Tuesday.
Addressing the House, Dr. Forson reaffirmed the Mahama administration’s commitment to deepening decentralisation and empowering local authorities, in line with Chapter 20 of the 1992 Constitution.
“The government under President John Dramani Mahama is resolute in its determination to reverse the recentralisation that has undermined the capacity of Assemblies over the past eight years,” he stated.
According to the Minister, previous New Patriotic Party (NPP) governments disbursed only 40–50% of DACF allocations directly to MMDAs, severely limiting their development potential. In contrast, the current government has committed to disbursing at least 80% of DACF resources directly to Assemblies, a move he says will boost grassroots economic growth.
“Approximately GH¢6.1 billion out of the total GH¢7.57 billion earmarked for 2025 will go directly to MMDAs to revitalise local economies,” Dr. Forson disclosed.
Guidelines for Fund Utilisation
Dr. Forson also announced that Cabinet has approved new utilisation guidelines for the DACF to ensure transparency and effectiveness. The allocations include:
25% for the design and construction of 24-Hour Economy Model Markets, 10% each for health facilities, educational infrastructure, potable water provision, sanitation, and school furniture, 5% for administrative costs, monitoring, and evaluation and 20% to complete abandoned projects from the former Development Authorities.
“These guidelines are a direct response to the financial and infrastructural gaps across districts and are aimed at fostering inclusive development,” he said.
The Finance Minister directed the Administrator of the DACF to ensure strict compliance, including the mandatory transfer of 80% of funds directly to Assemblies. He also urged Members of Parliament to monitor utilisation and ensure accountability in their respective constituencies.
Other Statutory Fund Disbursements
In a major development, Dr. Forson reported full and timely disbursements to other statutory funds for the first time in years.
National Health Insurance Fund (NHIF) received GH¢2.03 billion from January to March 2025. The funds have enabled the settlement of arrears owed to healthcare providers and supported the rollout of the ‘Mahama Care’ initiative—offering free primary healthcare.
Ghana Education Trust Fund (GETFund) was allocated GH¢2.71 billion covering the first four months of 2025. This has fully funded the Free Senior High School Programme, resolving past issues including food shortages and delayed capitation grants.
“These payments are a clear reflection of our commitment to meet all statutory obligations in our priority sectors,” Dr. Forson said.
He called on all Ghanaians and Members of Parliament to rally behind the government’s efforts to transform the economy from the grassroots.
Source: Felix Nyaaba/expressnewsghana.com
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