info@businessghana.com
Parliament has approved the proposed 2026 formula for the distribution of the District Assemblies Common Fund (DACF), with a total allocation of GH?8.77 billion for the year.
The figure represents an increase from the GH?7.51 billion allocated in 2025, marking a 16.78 per cent rise.
An amount of GH?166.95 million has been earmarked for prioritised infrastructure and development projects in line with government policy objectives.
The total allocation is based on five per cent of projected total revenue for 2026.
Already, the Minister of Finance has made full and prompt releases totalling GH?6.30 billion for all four quarters of 2025 to the DACF.
Per the report of the DACF submitted to Parliament by the Administrator of the DACF, Michael Harry Yamson, the Fund drew the House’s attention to 2024 arrears of GH?7.33 billion, based on total actual government revenue reported in the national accounts.
“We ask for Parliament’s support to verify and recover the arrears,” the report said.
The report said the Petroleum Revenue Management Act, 2025 (Act 1138) capped the share of the DACF at a maximum of five per cent, contrary to the stipulations of Article 252 of the Constitution, the Local Governance Act, 2016 (Act 936), and the decision of the Supreme Court of Ghana in the case brought by Benjamin Kpodo and Richard Quarshigah in 2019.
“We ask Parliament to take steps to review and remedy the capping of DACF allocations,” the Fund appealed.
The report pointed out that Ghana required a radical restructuring of its fiscal and governance architecture, anchored on a predictable and automatic transfer mechanism for funding the DACF, if decentralisation was to remain effective and relevant.
The Fund therefore called on Parliament to implement such legislative reform in 2026.
The formula allocated GH?68.73 million for educational policies and programmes within selected districts.
It also earmarked GH?98.22 million for strategic or intervention projects aimed at addressing urgent development gaps and policy priorities.
Per the report, about GH?603.02 million has been set aside for a number of projects.
This includes GH?87.70 million allocated to support distressed districts—areas facing serious socio-economic and development challenges, including high poverty levels, limited access to basic services, and weak local revenue capacity.
Such districts typically have fragile local economies and significant infrastructure deficits, including inadequate roads, schools, health facilities and water systems. They are also often exposed to climate risks, conflict and disasters, and may be difficult to access.
The Fund also allocated GH?263.0 million to support constituency monitoring and evaluation of projects by Members of Parliament.
“This amount would be shared equally among all MPs and shall be accounted for by MPs signing for the quarterly releases with documentary evidence of the usage of the funds,” it said.
Contributing to the motion, the Member of Parliament for Takoradi, Kwabena Okyere Darko-Mensah, welcomed the increase in the allocation for the equality factor from 20 per cent to 40 per cent.
He said he believed that was the most significant achievement of the House.
“At least now we are sure that a lot of our deprived areas will have equality of opportunity in determining their own destinies,” he said.
On the needs factor, which has increased to 53 per cent, he said the adjustment meant that “we should be able to manage each and every district in this country”.
For the seven per cent allocated for service pressure, he called for greater support for metropolitan and municipal assemblies.
“Mr Speaker, when you look at the formula and the allocation to each of the districts, you can see that the metropolitan assemblies clearly have been short-changed.
“So I believe that we should make special provisions for them now and going forward to top up some of the metropolitan assemblies,” he appealed,” he said.
He warned that without such support, areas such as Sekondi-Takoradi, Kumasi and Tema could begin agitating for the creation of separate municipalities for each constituency.
For his part, the Majority Chief Whip, Rockson-Nelson Dafeamekpor, said a key issue considered by the Committee of the Whole was the arrears, which had affected the completion of more than 4,767 legacy projects.
He noted that the projects, spread across constituencies, reflected the impact of Members of Parliament.
“I want to urge the Finance Minister to take steps to pay the arrears so that these legacy projects can be completed so the communities can put them to the purpose for which they have been set up,” he said.
