Minister for Finance, Dr. Cassiel Ato Forson, has announced a GH¢25 million disbursement for all District Assemblies nationwide to improve local economic development and enhance decentralisation.

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Speaking on the floor of Parliament on Tuesday, June 3, Dr. Ato Forson said the GHC6.1 billion allocation by the government is part of a broader strategy to empower local governance and ensure national resources reach the grassroots.

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“Government is guaranteeing that approximately GH¢6.1 billion of the GH¢7.57 billion earmarked for 2025 will be disbursed directly to the local assemblies to spur local economic activities at the district level.”

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“Mr. Speaker, in view of that, every District Assembly will receive a minimum of GH¢25 million this year [2025]. Our resources extend beyond mere release of funds. We have taken decisive steps to ensure that these resources are utilised in line with the government’s economic objectives,’ the minister said.

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The sector minister also revealed that the government has approved guidelines to ensure efficient utilisation of the allocation to prevent misuse and waste.

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In compliance, the government has outlined a targeted spending plan for funds allocated to District Assemblies, with a focus on infrastructure, health, education, and sanitation — including the construction of 24-hour economy model markets, CHPS compounds, schools, and boreholes across rural areas.

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The Finance Minister detailed the spending plan as follows: "Mr. Speaker, 25% of the amount transferred to the District Assemblies is to be utilised for the design and construction of 24-hour economy model markets. 10% is earmarked for the construction of health facilities, where a minimum of two CHPS compounds are supposed to be constructed at rural assemblies. Again, 10% is earmarked for the construction of educational facilities, including one KG block, one primary school block, and one junior high school block. Another 10% of the amount is earmarked for the provision of potable water in each assembly, of which a minimum of boreholes are supposed to be constructed in rural assemblies.”

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“Additionally, 10% will be allocated for environmental sanitation, including solid and liquid waste management. Another 10% is set aside for the provision of school furniture to enhance learning conditions. 5% will go towards the administration of the Assemblies, including monitoring and evaluation. Finally, recognizing the need to complete abandoned legacy projects, including the numerous uncompleted structures left behind by the Middle Belt Development Authority, Coastal Development Authority, and the Northern Development Authority, we have allocated a whopping 20% to fix the mess," he added.

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The Finance Minister’s appearance in Parliament yesterday was to brief the House on statutory funds following accusations by the Minority in Parliament. The Minority accused the minister of flouting Ghana’s financial laws - Act 936 of the Local Governance Act - by failing to release statutory funds nearly six months into the new administration by the minority side in Parliament.

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The District Assemblies Common Fund (DACF) was created to transfer financial resources from the central government to local governments (MMDAs).

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Prior to the 2024 general elections, the flagbearer of the National Democratic Congress (NDC) vowed to raise the District Assembly Common Fund (DACF) from the existing 5% to 7%.

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He emphasised that increasing the district assembly common fund would be one of the steps his government would take to enhance local governance.

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“If God smiles on us, and we win the 2024 elections, we are going to take decentralization seriously, the rest of the ministries seriously, and the rest of the MMDAs that are still centralized. We are going to complete the decentralization so that we truly hand over power to the people at the local government level. Until we get our decentralisation right, Ghana is not going to go anywhere, and so we are going to take it seriously,” Mahama said.

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