District assemblies to receive direct 80% of Common Fund under new policy
The government has introduced a policy to increase direct funding to Metropolitan, Municipal, and District Assemblies (MMDAs) by ensuring that 80% of the District Assemblies Common Fund (DACF) is disbursed directly to local authorities.
Presenting the 2025 Budget Statement and Economic Policy on March 11 2025 Finance Minister Dr Ato Forson explained that the measure is intended to reduce bureaucratic delays and allow district assemblies to execute development projects more efficiently.
“To improve project execution and service delivery at the local level, the government is ensuring that 80% of the Common Fund is sent directly to MMDAs,” Dr Forson stated.
The 2025 budget allocates GH¢7.51 billion to the Common Fund, covering:
• Infrastructure development
• Sanitation and waste management
• Education and health projects
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Many district assemblies have faced delays in receiving funds, which has slowed down local development projects.
The new policy aims to address this challenge by ensuring that assemblies gain faster access to their allocations.
“The new disbursement structure will give MMDAs the financial autonomy to implement projects without unnecessary delays,” Dr Forson said.
