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The Government of Ghana has unveiled a bold initiative to accelerate local development and strengthen grassroots governance by uncapping the District Assembly Common Fund (DACF).
This decision guarantees significant increases in direct funding to District Assemblies, empowering them to address developmental challenges more effectively.
Announcing the move, Finance Minister Dr Cassiel Ato Forson highlighted the government’s commitment to fiscal decentralisation during a meeting with H.E. Simone Giger, the Swiss Ambassador to Ghana, Benin, and Togo.
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The minister emphasised that the 2025 budget includes a new DACF formula that mandates 88% of the fund to be allocated directly to district assemblies.
This measure is expected to deepen decentralisation, enhance service delivery, and promote inclusive development. The decision comes amid growing calls for increased funding and autonomy for local authorities to handle pressing community needs.
In a historic first, the government has also approved direct payments to Assembly Members in recognition of their vital role in local governance and community development. This landmark decision aims to motivate and empower local representatives to effectively serve their communities.
Dr Forson explained that this targeted funding approach would strengthen local governance structures and hold officials accountable for delivering results. The minister assured Ghanaians that robust oversight mechanisms would be in place to ensure transparency and accountability in the use of public funds.
According to Dr Forson, the uncapping of the DACF forms part of the government’s broader decentralisation agenda to strengthen local governance and empower district assemblies. He stressed that adequate funding and autonomy are essential to enabling local governments to respond effectively to the needs of their communities.
The finance minister also lauded Switzerland’s continuous support for Ghana’s decentralisation drive and expressed optimism for further collaboration to promote fiscal accountability and good governance.
The uncapping of the DACF and the direct payment policy are seen as transformative measures that will strengthen grassroots governance, improve service delivery, and accelerate development in local communities.
With 88% of the DACF flowing directly to district assemblies and assembly members receiving remuneration, the government’s vision for decentralisation is set to empower local leaders, improve lives, and build resilient communities across the country.
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