Accra, June 3, 2025 — The Government of Ghana has taken a bold step toward reviving fiscal decentralisation and strengthening local governance by disbursing GH¢6.1 billion directly to Metropolitan, Municipal, and District Assemblies (MMDAs) from the District Assemblies Common Fund (DACF) for the 2025 fiscal year.
Making the announcement in Parliament, the Minister for Finance, Dr. Cassiel Ato Forson, said the move is part of the Mahama administration’s strategy to reverse years of recentralisation that deprived assemblies of vital resources for local development.
“For the past eight years, MMDAs have been under severe financial strain due to limited access to DACF allocations, receiving only 40% to 50% of the resources due them,” Dr. Forson told the House. “This government is committed to changing that narrative by ensuring at least 80% of DACF allocations are transferred directly to the Assemblies.”
He noted that out of the GH¢7.57 billion budgeted for DACF in 2025, GH¢6.1 billion will go directly to districts to fund development projects, boost local economic activity, and empower assemblies to deliver essential services more effectively.
Cabinet-Approved Guidelines for Fund Utilisation
To ensure transparency and value for money, Cabinet has approved strict guidelines for how the funds should be used:
- 25% for constructing 24-Hour Economy Model Markets
- 10% for health infrastructure (minimum of two CHPS compounds per Assembly)
- 10% for building schools (KG, Primary, and JHS blocks)
- 10% for potable water supply (minimum of 10 boreholes for rural Assemblies)
- 10% for environmental sanitation projects
- 10% for provision of school furniture
- 5% for Assembly administration, including monitoring and evaluation
- 20% for completing abandoned legacy projects from previous development authorities
“The time has come to fix the mess left behind by past inaction,” Dr. Forson declared. “Assemblies must use these resources prudently and in strict adherence to the approved guidelines.”
First Quarter Release and Oversight Measures
The Minister disclosed that GH¢987.96 million has already been transferred from the Consolidated Fund into the DACF account as the first quarter release. The Administrator of the DACF is mandated to transfer 80% of this amount directly to the Assemblies.
Further releases, Dr. Forson said, would be contingent on the submission of expenditure returns from the Assemblies, reinforcing the government’s demand for accountability and transparency in fund usage.
Prompt Payments to Other Statutory Funds
Dr. Forson also reported significant progress in payments to other statutory funds:
- The National Health Insurance Fund received GH¢2.03 billion for the first quarter of 2025, allowing the National Health Insurance Scheme to clear arrears owed to healthcare providers and operationalise the ‘Mahama Care’ programme, which includes Free Primary Healthcare.
- The Ghana Education Trust Fund (GETFund) was allocated GH¢2.71 billion for January to April 2025. This ensures full funding for the Free Senior High School Programme, resolving key challenges such as student feeding.
“These timely payments reflect our unwavering commitment to meeting our statutory obligations in the health and education sectors,” the Minister affirmed.
Call for Support and Oversight
Dr. Forson called on Members of Parliament to monitor the implementation of projects within their constituencies and support the government’s efforts to transform the country through decentralised development.
“Let us work together to strengthen our district assemblies and make them the true engines of local economic growth,” he concluded.
Source: Clement Akoloh||Parliamentary Network Africa
