The Minister of Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga, announced that the government has disbursed GH¢9.1 billion from the District Assemblies Common Fund (DACF) to Metropolitan, Municipal and District Assemblies (MMDAs) over six quarters. This move is part of the government's commitment to decentralisation and the principle that "Funds Follow Functions". The disbursements aim to support socio-economic infrastructure and improve living conditions in communities across Ghana.
According to Hon. Ayariga, the government is committed to disbursing not less than 88% of the DACF to MMDAs. He contrasted the current administration's disbursements with those of the previous administration, stating that only GH¢390 million was directly disbursed to MMDAs in the 2024 fiscal year. In 2025, the first year of President John Mahama's administration, more than GH¢5 billion was disbursed to MMDAs.
The increased funding has translated into investments in healthcare, education, water, sanitation, and other local infrastructure. Hon. Ayariga reported that 397 of 566 CHPS compounds and health centres have been completed, alongside 502 of 761 classroom blocks and 3,081 of 4,029 mechanised and hand-pump boreholes. These projects aim to improve the quality of life for Ghanaians.
Furthermore, 97 out of 134 small-town water projects have been completed, with several sanitation-related facilities also completed or ongoing. The Minister stated that the Ministry had successfully conducted the ninth cycle of the District Assemblies Performance Assessment Tool for all 261 MMDAs, resulting in an expected transfer of approximately GH¢840 million to the assemblies under the DACF Responsiveness Factor Grant programme.
Hon. Ayariga added that the government is committed to strengthening local economies through increased investment at the MMDA level. The increased flow of resources to local authorities is intended not only to finance infrastructure but also to stimulate economic activity and create jobs within communities. This approach is expected to have a positive impact on Ghana's economy.
The government's disbursement of GH¢9.1 billion to MMDAs demonstrates its commitment to decentralisation and improving the lives of Ghanaians. The Minister's announcement was made at the Government Accountability Series at the Presidency, highlighting the government's efforts to promote transparency and accountability.
The disbursement of funds to MMDAs is expected to have a significant impact on the development of local communities. With the government's continued commitment to decentralisation, Ghanaians can expect to see improvements in socio-economic infrastructure and living conditions.
Key points
- The Ghanaian government has disbursed GH¢9.1 billion to MMDAs over six quarters.
- The disbursements aim to support socio-economic infrastructure and improve living conditions in communities across Ghana.
- The government is committed to disbursing not less than 88% of the DACF to MMDAs.
