The Finance Minister, Dr Cassiel Ato Forson, has made a bold fiscal move aimed at accelerating local economic growth and deepening decentralisation following the announcement of the allocation of GH¢25 million annually to each District Assembly across Ghana.
Delivering the statement to Parliament on Tuesday, Dr. Forson outlined the allocation as a cornerstone of the Mahama administration’s bottom-up economic revitalisation strategy. The initiative, which forms part of a broader GH¢7.57 billion fiscal framework, will see approximately GH¢6.1 billion disbursed directly to local assemblies.
“Government is guaranteeing that approximately GH¢6.1 billion of the GH¢7.57 billion earmarked for 2025 will be disbursed directly to the local assemblies to spur local economic activities at the district level,” the Finance Minister stated.
He added, “Mr. Speaker, in view of that, every District Assembly will receive a minimum of GH¢25 million this year. Our resources extend beyond mere release of funds. We have taken decisive steps to ensure that these resources are utilised in line with the government’s economic objectives.”
The unprecedented investment underscores government’s commitment to empowering local governance structures and ensuring equitable distribution of national resources. It also reflects the administration’s prioritisation of grassroots-led development as a sustainable path to economic recovery and inclusive growth.
The announcement arrives amid heightened political scrutiny, with the Minority in Parliament accusing the Finance Ministry of delaying the release of statutory funds to key government institutions, a claim Dr. Forson strongly rebuffed with the rollout of this decentralisation package.
Analysts view the injection of funds into the districts as a potential catalyst for micro and small business development, infrastructure upgrades, and job creation in rural and peri-urban communities. With a guaranteed minimum of GH¢25 million per assembly, stakeholders anticipate enhanced capacity for project execution, especially in sectors such as agriculture, local manufacturing, education, and health.
The move could offer private sector players increased opportunities for collaboration with District Assemblies on public-private partnerships, local supply chain development, and investment in local infrastructure.
