Gov't allocates GH¢7.5 billion to boost local economies through District Assemblies

The Minister of Finance, Dr. Cassiel Ato Forson, has announced a new policy. This initiative is part of the 2025 Budget. It aims to boost local economies and promote decentralisation.

In Parliament, Dr. Forson revealed the government’s allocation of GH¢7.51 billion. At least 80% of this amount, about GH¢6.1 billion, will go to the District Assembly Common Fund (DACF). This fund will be directly disbursed to Metropolitan, Municipal, and District Assemblies (MMDAs).

Every District Assembly will receive a minimum of GH¢25 million. This is a significant increase from previous years. The Minister emphasized that funds must align with clear economic goals. Strict guidelines will ensure accountability and impact.

Additionally, 25% of the funds will support 24-Hour Economy Model Markets nationwide. This initiative aims to encourage round-the-clock trading and create jobs.

Dr. Forson stated, “This represents a clear break from the past.” He noted that less than half of the DACF previously reached local authorities. Now, districts are being empowered with real resources for growth.

He praised Parliament for supporting this proposal. He called it a strong endorsement of fiscal decentralisation and inclusive economic development.

This move is expected to enhance the financial capacity of MMDAs significantly. It will enable them to undertake important infrastructure and economic projects tailored to their communities' needs.