Finance Minister Dr. Cassiel Ato Forson has announced that every Metropolitan, Municipal, and District Assembly (MMDA) in Ghana will receive a minimum of GHS 25 million from the District Assemblies Common Fund (DACF) by the end of the year.
This move is part of the government’s renewed push to strengthen local governance and accelerate development at the grassroots.
Dr. Ato Forson made the announcement while addressing Parliament on the status of statutory fund disbursements.
According to him, over GHS 987 million has already been disbursed from the DACF for the first quarter of 2025, in line with a directive that at least 80% of the funds be transferred directly to the Assemblies.
“This is a decisive step to restore the financial capacity of our Assemblies, which have faced severe constraints over the past eight years,” the Minister said. “President Mahama’s administration is committed to decentralization as enshrined in Chapter 20 of the 1992 Constitution.”
Dr. Forson criticized previous governments for undermining the financial independence of the Assemblies, stating that only 40–50% of allocated funds were transferred directly in the past. The new directive seeks to reverse this trend and ensure full and timely disbursement to support local economic development.
Targeted Allocation Breakdown
To ensure accountability and impactful use of the funds, Cabinet has approved specific expenditure guidelines for the Assemblies; 25%: Design and construction of modern markets in each district, 10%: Health infrastructure, including at least two CHPS compounds per Assembly, 10%: Education infrastructure each Assembly is to construct one KG block, one primary school block, and one JHS block.
Ten Perscent (10%) provision of potable water, with a minimum of 10 boreholes in rural Assemblies, 10%: Supply of school furniture, 5%: Administrative costs and monitoring and 20% completion of legacy projects, especially those abandoned under former development authorities.
Assemblies are barred from diverting funds toward unauthorized administrative expenses.
The Finance Minister emphasized that expenditure returns must be submitted to the Ministry of Finance before subsequent disbursements will be approved.
Additional Fund Releases
The Minister also revealed significant disbursements to other statutory funds, the Ghana Education Trust Fund (GETFund) has received GHS 2.71 billion covering January to April 2025.
This funding now fully supports the Free SHS program, resolving previous challenges related to feeding and infrastructure.
The National Health Insurance Fund has received GHS 2.03 billion, including full payments for January to March.
These funds will help revitalize health service delivery and support initiatives such as the Free Primary Healthcare program and the “MahamaCare” Trust.
Dr. Forson called on MPs to monitor fund usage in their respective constituencies, assuring them that the current administration remains committed to prudent financial management and grassroots development.
“These timely and full releases are a clear reflection of our commitment to rebuild trust and restore functionality across key sectors,” he said.
Source: www.kumasimail.com
