In a parliamentary address today, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, announced that every Metropolitan, Municipal, and District Assembly (MMDA) in the country will receive a minimum of GH¢25 million as part of the 2025 financial year disbursement. This initiative, he explained, is designed to strengthen local governance and accelerate grassroots development.
The funding comes from the District Assemblies Common Fund (DACF), with over GH¢7.57 billion earmarked in the 2025 budget. Out of this, GH¢6.1 billion will go directly to the assemblies. For the first quarter alone, GH¢987.97 million has already been released into the DACF account.
Dr. Forson emphasized that 80% of the DACF is expected to be transferred directly to the assemblies. To ensure accountability, all MMDAs must submit proper expenditure reports to the Ministry of Finance before additional funds are disbursed.
This financial commitment marks a significant move to empower local governments to lead in development projects—ranging from roads and schools to healthcare and sanitation—within their districts.
Despite recent criticisms about the government’s handling of statutory payments, the Finance Minister stood firm, assuring Parliament that these allocations demonstrate a strong commitment to local economic growth and responsible fiscal management.
