Local development in Ghana, as well as the delivery of social services such as health, education, and infrastructure, is set for a major boost as the government has announced the disbursement of significant funds to these accounts.
Minister for Finance, Dr. Cassiel Ato Forson, in an address to Parliament on Tuesday, announced this financial commitment to deepen Ghana’s decentralization and the development agenda, including social welfare programmes.
He, however, confirmed that the latest release of billions of Ghana cedis to statutory funds is just to cover the first quarter of the year.
Dr. Forson declared that under the leadership of President John Dramani Mahama, statutory funds that had suffered years of neglect are finally receiving their due.
The impact, he says, will be manifested in stronger district assemblies, revived public healthcare, and renewed momentum for education at all levels.
DACF Gets Over GH¢987 Million — With 80% Going Directly to Districts
Top of the agenda was the District Assemblies Common Fund (DACF), which has seen a first-quarter disbursement of GH¢987,965,073.00. The Finance Minister claimed this is a sharp turnaround from what he described as a paltry 40–50% direct release in the past eight years.
He added that President Mahama’s administration is determined to restore the financial muscle of our district assemblies.
“For the first time in many years, MMDAs will receive no less than 80% of their allocated Common Fund directly. That’s about GH¢6.1 billion out of GH¢7.57 billion for 2025 alone,” he added.
He did not mince words in condemning the previous administration’s “recentralisation” of the DACF, saying it crippled local governments’ ability to address grassroots challenges.
Targeted Spending: Model Markets, Schools, Health and Sanitation Projects
The Minister further emphasized that the Mahama administration is enforcing accountability and purpose-driven expenditure. Dr. Forson unveiled detailed Cabinet-approved spending guidelines that earmark percentages of the Common Fund for specific, high-impact projects:
- 25% for the construction of 24-hour Economy Model Markets, a key campaign promise of President Mahama.
- 10% each for building health and educational facilities across districts.
- 10% for providing potable water, at least 10 boreholes per rural district.
- 10% for solid and liquid waste management.
- 10% for school furniture.
- 5% for assembly administration and monitoring.
- 20% to complete hundreds of abandoned infrastructure projects left behind by defunct development authorities.
“We have transferred the sum of Nine Hundred and Eighty-Seven Million, Nine Hundred and Sixty-Five Thousand and Seventy-Three Ghana Cedis (GHS987,965,073.00) from the Consolidated Fund into the District Assembly Common Fund Account, being the first quarter amount due the DACF,” he told the House.
GHS2 Billion Paid to NHIS — ‘Mahama Care’ Rolling Out
Healthcare has not been left behind. Dr. Forson announced a GHS2.03 billion transfer to the National Health Insurance Fund for the first quarter alone. The funding has enabled the clearing of arrears owed to health providers and the rollout of the ambitious Free Primary Healthcare and Ghana Medical Care Trust Programme, also known as ‘Mahama Care’.
This means doctors, nurses, patients, suppliers, and service providers can now breathe a little easier.
“These disbursements have enabled the National Health Insurance Scheme to settle arrears owed to healthcare providers and to implement the Free Primary Healthcare and Ghana Medical Care Trust programme, also known as ‘Mahama Care’,” he noted.
GETFund Gets GHS2.7 Billion — Free SHS Finally Gets a Lifeline
The Ghana Education Trust Fund (GETFund) has also seen a substantial allocation of GHS2.71 billion between January and April 2025.
The Finance Minister confirmed that this includes full funding for the Free SHS programme, addressing the feeding and infrastructure challenges that have plagued the initiative for years.
He announced that, “funding for the Free Senior High School Programme is now fully covered under the GETFund. Consequently, the challenges, including feeding, which previously impeded the smooth implementation of the programme, have been resolved.”
A Return to Discipline, Purpose, and Development
The Minister reiterated that these payments signal the government’s commitment to decentralisation, service delivery, and restoring trust in public institutions.”
With over GHS5.7 billion already pumped into statutory funds in just the first four months of the year, he noted that the Mahama administration is clearly setting a new tone for prompt payment, strategic allocation, and local empowerment.
