Government has redirected significant financial resources to local authorities in a move designed to accelerate grassroots development and improve service delivery. President John Mahama announced that district assemblies are now receiving 80% of their statutory allocations directly, a sharp increase from previous years when less than half reached them.
Of the $7.57 billion earmarked for the District Assemblies Common Fund (DACF) this year, about $6.1 billion has already been disbursed directly to assemblies, with each Metropolitan, Municipal, and District Assembly (MMDA) guaranteed a minimum of $25 million. The first-quarter release alone stood at $987.97 million, enabling districts to begin infrastructure and social development projects without delays.
To ensure accountability and targeted impact, Cabinet has approved detailed expenditure guidelines. A quarter of the fund will go into designing and constructing 24-hour economy model markets, part of the administration’s flagship program to extend economic activity around the clock.
Health spending is capped at 10%, with each district expected to construct at least two CHPS compounds, while education projects are tied to new classroom blocks, one kindergarten, and one primary school per district. Funds are also earmarked for water and sanitation projects, school furniture, and completion of legacy projects.
The guidelines also mandate that 7.5% of allocations support administration, monitoring, and evaluation at the district level, ensuring oversight in fund utilization.
The disbursements form part of a wider decentralization strategy aimed at making development more inclusive and reducing the bottlenecks associated with central government control of resources. By directly channeling funds to districts, the government is seeking to stimulate local economies, attract small-scale contractors, and improve delivery in critical sectors such as health, education, and market infrastructure.
In addition to the DACF, statutory funds have been released in full, including $2.03 billion for the National Health Insurance Fund and $2.71 billion for the GETFund, which covers Free SHS, infrastructure, and tertiary education.
The scale and predictability of these disbursements could help ease liquidity pressures on local governments, enhance investor confidence in district-level projects, and open new opportunities for the private sector in construction, healthcare, and education supply chains.
President Mahama is expected to break ground next week on the Big Push Program, with roads as the initial focus, linking the decentralization agenda with broader national infrastructure upgrades.
