Gov’t deepens decentralisation with GH¢9.1bn Common Fund transfers – Local Government Minister
The government has transferred a total of GH¢9.1 billion to Metropolitan, Municipal and District Assemblies (MMDAs) through the District Assemblies Common Fund (DACF) over the last six quarters, Minister for Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga, has disclosed.
According to Mr Ayariga, the funds cover the four quarters of 2025 and the first two quarters of 2026, and form part of the government’s efforts to strengthen decentralisation and ensure local authorities have the resources needed to deliver essential services.
Speaking at the Government Accountability Series, the Minister said the disbursements reflected the government’s commitment to the principle of “funds follow functions”, under which local authorities must be adequately resourced to perform their responsibilities.
“To demonstrate government’s commitment to resource the MMDCEs and adhere to the principle of triple F, that is, funds follow functions, the Ministry has facilitated the transfer of a total amount of GH¢9.1 billion for the six quarters of the District Assembly Common Fund,” he said.
Mr Ayariga explained that the money had been transferred by the Minister for Finance to the Common Fund Administrator, who subsequently disbursed it to the various MMDAs.
The funds, he said, were intended to support the provision of socio-economic infrastructure and improve living conditions for residents across the country.
Mr Ayariga also used the opportunity to highlight what he described as a significant increase in Common Fund disbursements under the current administration compared with 2024.
He said the previous government transferred about GH¢390 million to MMDAs in 2024, while the current administration disbursed more than GH¢5 billion in 2025 alone.
“This is a demonstration of our commitment to decentralisation and strict adherence to the principle of triple Fs,” he said.
According to the Minister, the 2025 disbursement was more than 12 times the amount transferred to the assemblies in 2024.
He said the increased funding was necessary because local government authorities could not effectively perform their functions without adequate financial resources.
“If you say you are committed to decentralisation and yet you are not sending the money to them, how are they going to function?” he asked.
Mr Ayariga said the increased Common Fund allocations were expected to support development at the local level while creating jobs and stimulating economic activity within communities.
He stressed that the government’s vision was to make local government authorities more responsive to the everyday needs of residents, including sanitation, roads, drainage, water, healthcare, education and public transport.
He said the government also expected MMDAs to play a greater role in developing local economies and creating opportunities for residents.
“Those monies are meant to create jobs, lubricate the economies there,” he said.
The Minister maintained that strengthening the financial capacity of MMDAs was central to the government’s broader decentralisation agenda and its efforts to ensure that development was not concentrated only at the national level.
