The government of Ghana has allocated GH¢17.6 billion to the Local Governance, Chieftaincy and Religious Affairs sector in the 2027 Budget. This allocation is part of the government's broader spending plan to strengthen local administration, improve community services, and expand infrastructure development across Metropolitan, Municipal and District Assemblies (MMDAs). Finance Minister Dr. Cassiel Ato Forson announced the allocation during the presentation of the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12, 2026.
A significant portion of the allocation, GH¢10.8 billion, has been earmarked for the District Assemblies Common Fund (DACF) to finance development projects across the country. The DACF is expected to support development at the district and community levels, particularly in areas of market infrastructure, housing, sanitation, and regional administration. The allocation to DACF is a crucial component of the government's efforts to decentralize governance and promote local economic development.
In addition to the DACF provision, the government has allocated GH¢685 million for the construction of a modern Greater Accra Regional Market at New Agbogbloshie. Another GH¢685 million has been allocated towards the completion of Phase Two of the Kejetia Market project. The Takoradi Market project is also expected to receive GH¢200 million to support its completion. These allocations are expected to improve market infrastructure and provide better trading conditions for vendors.
The government has also allocated GH¢500 million for rural housing construction, GH¢400 million for integrated recycling and composting plants, and GH¢200 million for the construction of 10 engineered landfill sites. Additionally, GH¢100 million will support the establishment of 25 waste transfer stations across the country. These initiatives aim to improve sanitation and waste management in the country.
The budget also provides GH¢272 million for the renovation of Regional Coordinating Councils and their residences to improve regional administration and provide better working conditions for officials. Furthermore, GH¢150 million has been set aside for the payment of allowances to Assembly Members as part of efforts to support local governance and service delivery.
The GH¢17.6 billion provision forms part of the government's projected total expenditure of GH¢389.2 billion for the 2027 financial year. The allocations are expected to support development at the district and community levels, particularly in areas of market infrastructure, housing, sanitation, and regional administration.
The government's allocation to the Local Governance, Chieftaincy and Religious Affairs sector is a significant step towards decentralizing governance and promoting local economic development. The effective implementation of these initiatives will depend on the efficient management of the allocated funds and the collaboration of various stakeholders.
Key points
- The government allocates GH¢17.6 billion to the Local Governance, Chieftaincy and Religious Affairs sector in the 2027 Budget.
- GH¢10.8 billion is earmarked for the District Assemblies Common Fund (DACF) to finance development projects across the country.
- The budget also provides for various infrastructure development projects, including market construction, rural housing, and sanitation initiatives.
