Accra, Ghana - 04 June, 2025 - Ghana's Finance Minister, Dr. Cassiel Ato Forson, has announced a significant boost to local economic development with the disbursement of GH¢987,965,730 to the District Assemblies Common Fund (DACF) as the first-quarter allocation for 2025.
This amount, released from the Consolidated Fund on June 2, marks a crucial step towards fiscal decentralization and empowering Metropolitan, Municipal, and District Assemblies (MMDAs) across the country.
“As of yesterday, [June 2], the DACF has received and we have transferred the sum of GHC987,965.73 [Nine hundred and eighty seven million, nine hundred and sixty five thousand and seven three Ghana cedis] from the Consolidated Fund to the DACF,” he said on the floor of parliament on June 3.
As part of a broader strategy to revitalize the economy from the bottom up, Dr. Forson revealed that every District Assembly will receive a minimum of GH¢25 million in 2025.
“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.”
“Being the first quarter amount due the DACF, for the year 2025. The Administrator of the DACF is required to ensure that 80% of this amount is transferred directly to the district assemblies without fail. And the expenditure returns submitted to the Ministry of Finance before any subsequent release will be made,” he said.
This initiative aims to strengthen local governance, promote inclusive growth, and support the Mahama administration's economic objectives.
The disbursement comes amidst criticism from the Minority, who accused the Finance Minister of withholding funds from key government institutions despite clear legal obligations and available resources.
Dr. Forson, however, assured that the current administration is committed to reversing the trend of erratic disbursements that previously undermined local governments' effectiveness.
To ensure transparency and accountability, the DACF Administrator is mandated to transfer at least 80% of the disbursed funds directly to the district assemblies. The assemblies are required to submit detailed expenditure returns to the Ministry of Finance before subsequent quarterly disbursements are made.
Dr. Forson urged Members of Parliament to monitor the utilization of these funds in their constituencies, ensuring adherence to cabinet-approved guidelines.
“Hon. Members of Parliament are also encouraged to monitor the utilisation of this amount sent to their respective district assemblies in line with the approved guidelines by the cabinet of President John Dramani Mahama,” he urged.
The funds will be allocated towards various development projects, including;
- Model Markets: 25% of the amount will be used for the design and construction of model markets in each district.
- Health Infrastructure: 10% will be allocated for health facilities, including the construction of at least two new CHPS compounds in rural areas.
- Educational Infrastructure: 10% will be set aside for educational facilities, covering kindergarten, primary, and junior high school blocks.
- Water and Sanitation: 10% will be allocated for providing potable water, including at least 10 boreholes in rural districts.
- School Furniture: 10% will be used for the provision of school furniture.
- Legacy Projects: 20% will be dedicated to completing abandoned projects initiated by former regional development authorities.
- Administrative Costs: 5% will be capped for administrative costs, monitoring, and evaluation to prevent misuse of funds.
Source: Lead News Online
