Government set to Allocate 80% of District Common Fund to Regions
Accra, Ghana - 11 March, 2025 - Ghana's government has unveiled a significant overhaul of its funding allocation, with at least 80% of the District Assembly Common Fund set to be devolved to regional districts.
This move aims to empower local authorities to make key decisions and drive development in their areas.
The decision, announced by the Minister of Local Government, Chieftaincy, and Religious Affairs Ahmed Ibrahim, marks a major push towards decentralization, a key priority for President Mahama's administration.
According to him, the government is committed to strengthening local governance and ensuring that resources are targeted effectively at the grassroots level.
“ What President Mahama is doing now is bringing all the development authorities back under the Ministry of Local Government. He is also committing to allocating 80% of the District Assembly Common Fund to the districts so they can independently decide how to use the funds.
“With this, districts in Accra will no longer have to move facilities like boreholes and toilets to different districts in other regions. The essence of decentralization is to devolve power to the people while equipping them with the necessary resources to address their local needs, which often differ from the priorities of the central government. What we are doing now is the best approach, and they are happy about it,” he added.
The development has been welcomed by international partners, including Switzerland, whose Ambassador, H.E. Simone Petra Giger, praised Ghana's commitment to decentralization.
Switzerland has pledged to continue supporting Ghana's efforts to enhance local governance and drive national development.
“Ghana has a long history of decentralization reforms. While this was a courtesy meeting, we also received a positive signal from the minister, indicating that Ghana is entering a new phase of decentralization, which I believe will benefit the country.
“My visit today also signifies that Switzerland stands with Ghana, and we are here to stay. If Ghana is truly committed to taking the next step by granting more power and authority to local governments, we will be extremely happy to support that effort,” Swiss Ambassador Simone Petra Giger stated.
The funding shift is expected to have a significant impact on local communities, enabling them to tackle pressing development challenges and improve public services.
Source: Lead News Online
