Mahama boosts decentralisation with GHS6.3bn DACF allocation

President John Dramani Mahama has announced a GHS6.3 billion allocation to the District Assemblies Common Fund (DACF) to strengthen decentralised governance in 2025.

He disclosed on Friday while delivering this year’s State of the Nation Address, outlining the government’s commitment to resource local authorities adequately under his Resetting Agenda.

“To strictly follow the Resetting Agenda and secure sufficient funding, the Ministry of Finance has allocated GHS 6.3 billion to the District Assemblies Common Fund (DACF),” he told Parliament.

According to the President, the allocation covers all four quarters of the 2025 fiscal year and is intended to support development planning and service delivery at the local level.

“This amount covers four quarters of the 2025 fiscal year and is allocated to all 261 Metropolitan, Municipal, and District Assemblies (MMDAs) to execute their activities outlined in the Medium-Term Development Plans and Annual Action Plans (AAPs),” he said.

President Mahama emphasised that the funding structure is designed to ensure predictability and stability in local governance financing, enabling assemblies to implement projects without disruption.

Providing an update on disbursements, he indicated that a significant portion of the funds has already been released.

“Out of the amount released, a total of GHS 4.3 billion has been disbursed to all MMDAs. The 4th Quarter instalment is being processed for disbursement,” he stated.

The President’s remarks signal a renewed focus on decentralisation as a tool for grassroots development, with assemblies expected to prioritise infrastructure, social services, and local economic initiatives captured in their approved plans.

The government aims to reinforce fiscal discipline while empowering local authorities to drive development in their respective jurisdictions.