The Government of Ghana has announced that every Metropolitan, Municipal, and District Assembly (MMDA) will receive a guaranteed GH¢25 million annually, beginning this year, aimed at boosting local development and decentralisation.
The announcement was made by Finance Minister Dr. Cassiel Ato Forson during a presentation to Parliament, where he outlined a new fiscal framework meant to power Ghana’s grassroots economic revitalisation.
Direct Funding to Districts: Breaking New Ground
Under the new initiative, a total of GH¢6.1 billion out of the GH¢7.57 billion budgeted for local development will be transferred directly to all 261 District Assemblies.
“Every District Assembly will receive a minimum of GH¢25 million this year. We’ve taken firm steps to ensure the funds are utilised in line with the government’s economic priorities,” Dr. Forson affirmed.
This marks one of Ghana’s most significant moves towards fiscal decentralisation, ensuring that development decisions and resources are brought closer to communities.
What the GH¢25M Will Be Used For
The government has outlined a strategic spending plan for the GH¢25 million allocated to each district:
- 25% – Design and construction of 24-hour economy model markets
- 10% – Construction of two CHPS health compounds
- 10% – Construction of new schools (1 KG, 1 primary, 1 JHS block)
- 10% – Provision of potable water (minimum of 10 boreholes for rural areas)
- 10% – Environmental sanitation, including waste management
- 10% – Procurement of school furniture
- 7.5% – Administration, monitoring, and evaluation by the assemblies
- 20% – Completion of abandoned projects inherited from development authorities like NDA, CODA, and MBDA
This structured use of funds is intended to create immediate and visible change in local communities while improving essential services such as health, education, sanitation, and markets.
First Disbursement Already Made
Dr. Forson confirmed that GH¢987 million has already been transferred from the Consolidated Fund into the District Assemblies Common Fund (DACF) account as part of the first quarter disbursement.
Assemblies are required to submit expenditure returns before the release of subsequent funds to ensure accountability and transparency.
Boosting Job Creation and Private Sector Growth
Analysts believe the GH¢25 million annual district allocation will spur:
- Local entrepreneurship and job creation
- Infrastructure development
- Opportunities for private-public partnerships
- Support for rural micro-businesses
The policy also aims to encourage more targeted investment in sectors such as agriculture, health, and education.
Political and Public Reactions
While the initiative has been praised for its ambitious scope, it comes amid recent political scrutiny over alleged delays in disbursing statutory funds. The government sees this as a strong rebuttal and a practical response to such concerns.
“This is a new era for district development—an era where we prioritise results, equity, and efficiency,” the Finance Minister added.
Ghana’s commitment to allocate GH¢25 million annually to each District Assembly signals a transformative moment in national development policy. If implemented effectively, it could set a precedent for sustainable, inclusive growth and empower local communities like never before.
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