Dr. Cassiel Ato Forson
The Minister for Finance, Dr. Cassiel Ato Forson, has announced that an amount of GH¢987,965,073 has been transferred to the District Assembly Common Fund (DACF) as the first quarter disbursement for the year 2025.
Addressing Parliament yesterday, Dr. Forson emphasised that the release reflects the Mahama administration’s unwavering commitment to fiscal decentralisation and the revitalisation of local governance structures.
“This government, under President John Mahama, is resolute in its determination to reverse the unfortunate trend of centralisation that severely weakened our Metropolitan, Municipal and District Assemblies (MMDAs) over the past eight years,” he stated.
He stated that, between 2017 and 2024, only 40% to 50% of DACF allocations reached the assemblies directly, which he noted, undermined their ability to support local economic development.
However, the minister said the current administration has instituted a policy to ensure that at least 80% of DACF allocations are transferred directly to MMDAs going forward.
“This measure will empower assemblies to drive economic growth at the local level and deepen the process of decentralisation,” he added.
According to the Finance Minister, this year alone, each district assembly will receive a minimum of GH¢25 million, and the government has taken decisive steps to ensure that the funds are used effectively and transparently.
He outlined that 10% of the funds is earmarked for constructing educational infrastructure, including a KG block, a primary school block, and a JHS block per assembly.
He added that another 10% is allocated for the provision of potable water, including at least 10 boreholes per rural assembly, as well as an additional 10% which is dedicated to procuring school furniture.
Dr. Forson stressed that the Administrator of the Common Fund is required to ensure the direct transfer of 80% of the disbursed amount to the assemblies and submit expenditure returns to the Ministry of Finance before subsequent releases are made.
He urged Members of Parliament (MPs) to monitor the use of funds in their constituencies in accordance with Cabinet-approved guidelines.
The minister revealed that, for the first time in months, all transfers to statutory funds have been made in full and on time.
This, he said, includes GH¢2.03 billion disbursed to the National Health Insurance Fund for January to March 2025, and GH¢2.71 billion released to the Ghana Education Trust Fund (GETFund), covering allocations for January to April 2025.
Dr. Forson said the timely releases have helped the NHIS clear arrears owed to healthcare providers and enabled the rollout of the Mahama Cares initiative, which offers free primary healthcare.
Additionally, he noted that the Free Senior High School programme is now fully funded under GETFund, which is helping resolve challenges such as student feeding.
“These payments are a clear reflection of our commitment to meet all statutory obligations in priority sectors of the economy,” he concluded.
By Ernest Kofi Adu, Parliament House