US-based Ghanaian renowned private legal practitioner and an accountant, Prof. Stephen Asare, widely known as Prof. Kwaku Azar is championing transformational reforms in Ghana’s decentralization architecture to give fiscal autonomy to districts.
Prof. Asare wants districts and municipals in Ghana to be empowered with more economic and financial power that will drive massive economic growth and development at the local level.
The lawyer and accountant has observed that the current over-concentration of fiscal authority with the central government is a disadvantage to the local government. He says districts in the country overly depend on the central government for funding hence limiting socio-economic development.
He further adds that the situation has culminated in increasing poverty levels in some districts as “small districts cannot raise sufficient revenue and remain dependent, perpetuating poverty.”
“Migration from poor districts to urban centers strains infrastructure in urban centers, worsening urban poverty and congestion,” Prof. Asare in a social media post indicated.
With this challenge, Prof. Asare is championing a reform that will enable districts to play a more proactive role in managing their resources and providing essential services such as schools, utilities, and local infrastructure.
To achieve this, he is calling for a system that gives fiscal autonomy to these districts to allow them to directly levy property tax and other levies to boost local revenues. This measure, he argues, would enhance accountability and ensure funds are channeled into pressing community needs.
Additionally, the reform proposes mechanisms for equitable revenue distribution from the national government to districts, ensuring that allocations are based on population sizes and developmental needs, not political considerations.
He believes in a reform that “allows districts to levy property taxes and manage essential public services such as schools, utilities, and local infrastructure” and “create mechanisms for equitable revenue distribution from the national government to districts based on population and development needs.”
He adds that his proposed fiscal autonomy reforms must allow districts to borrow responsibly, guided by sustainable benchmarks. This fiscal flexibility would empower local authorities to invest in critical infrastructure projects and drive economic growth without overburdening their financial systems.
Prof. Asare further proposes that districts must be empowered to enter into Public-Private Partnerships (PPPs) to develop infrastructure and commercial ventures. This approach would attract private sector expertise and funding, reducing dependency on central government disbursements while creating opportunities for job creation and local economic development.
He maintains that the country should consider allowing “districts to borrow based on sustainable benchmarks.” and also “enter into PPP to develop infrastructure and commercial resources.”
It is anticipated that these proposed reforms if considered and implemented, could significantly bridge the development gap between rural and urban areas. Already the current existing system has been heavily criticized for over-centralization of resource allocation which often overlooks smaller districts and hence stifles their growth potential.
By empowering districts with fiscal autonomy, Ghana could unlock the full potential of its local governments and pave the way for equitable development nationwide.
