Parliament has approved the 2026 formula for the distribution of the District Assemblies Common Fund (DACF), which will pave the way for the allocation of resources to Metropolitan, Municipal and District Assemblies (MMDAs) across the country in line with revised equity and development priorities.
The approved formula, as outlined in the report, introduces significant adjustments to key components, notably increasing the equality factor from 20 percent to 40 percent.
This adjustment is expected to enhance resource distribution to deprived districts and promote balanced development nationwide.
Contributing to the debate prior to the approval, the Member of Parliament (MP) for Takoradi, Kwabena Okyere Darko-Mensah, described the increase in the equality factor as the most critical achievement of the House in the consideration of the formula.
He noted that the change would ensure that deprived areas are given a fair opportunity to determine their development paths.
He further pointed to the allocation of 53 percent under the “responsiveness” or needs-based component, indicating that it reflects the current realities and should enable the local authorities to better manage districts.
However, he raised concerns about the 7 percent allocation for service pressure, arguing that Metropolitan and Municipal Assemblies appear to have been short-changed under the formula.
According to him, major urban centres such as Sekondi-Takoradi and Kumasi face increasing population pressures and require additional financial support.
He cautioned that failure to address these disparities could trigger agitations for the creation of more administrative units, which may not be in the broader national interest.
Mr. Darko-Mensah also criticised the use of reserve funds, particularly allocations to National Disaster Management Organisation (NADMO), questioning the agency’s procurement practices.
He urged the government to adopt a policy compelling the agency to procure locally produced rice instead of imported varieties, arguing that such a move would support local farmers and reduce post-harvest losses.
On his part, the MP for South Dayi, Rockson-Nelson Dafeamekpor, threw his weight behind the adoption of the formula but drew attention to the issue of arrears affecting numerous legacy projects across the country.
He disclosed that about 4,767 such projects remain uncompleted due to delayed payments.
He urged the Ministry of Finance to prioritise the settlement of these arrears to facilitate the completion of the projects and ensure that communities benefit from the intended interventions.
Following the debates, the House adopted the report and approved the formula, which sets the stage for the disbursement of DACF allocations for the 2026 fiscal year.
By Ernest Kofi Adu, Parliament House