Accra, Ghana – Finance Minister Dr. Cassiel Ato Forson today informed Parliament that the government has commenced a significant increase in direct financial transfers to Metropolitan, Municipal, and District Assemblies (MMDAs), alongside ensuring prompt and full payments to all other statutory funds, including the National Health Insurance Fund (NHIF) and the Ghana Education Trust Fund (GETFund).
Speaking to lawmakers, Dr. Forson emphasized President John Dramani Mahama’s commitment to decentralised development, aiming to reverse what he described as an “unfortunate recentralisation” of the District Assembly Common Fund (DACF) over the past eight years, which had left MMDAs with only 40% to 50% of their allocated transfers. The Minister announced that, as endorsed in the 2025 Budget, a minimum of 80% of allocated DACF resources will now be transferred directly to MMDAs. This measure is expected to empower Assemblies to drive local economic growth, with approximately GH¢6.1 billion of the GH¢7.57 billion earmarked for 2025 to be disbursed directly to districts.
Dr. Forson confirmed that GH¢987,965,073.00 has already been transferred to the DACF account for the first quarter, with 80% mandated for direct transfer to Assemblies. Cabinet has also approved stringent guidelines for the utilization of these funds. These guidelines include allocating 25% for 24-Hour Economy Model Markets, 10% for health facilities (minimum of two CHPS compounds per Assembly), 10% for educational facilities (one KG, one primary, and one JHS block), 10% for potable water provision (minimum of 10 boreholes for rural Assemblies), 10% for environmental sanitation, and 10% for school furniture. An additional 5% is earmarked for administration, and a substantial 20% will be dedicated to completing abandoned legacy projects, including those from the Middle Belt, Coastal, and Northern Development Authorities.
Members of Parliament were encouraged to monitor the utilization of these funds within their respective assemblies.
Beyond the DACF, Dr. Forson reported that all other statutory funds have received prompt and full transfers. The National Health Insurance Fund has received GH¢2,033,469,607 for the period of January to March 2025, enabling the National Health Insurance Scheme to settle arrears to healthcare providers and implement the Free Primary Healthcare and Ghana Medical Care Trust programme, dubbed ‘Mahama Care. Similarly, the Ghana Education Trust Fund (GETFund) has received GH¢2,710,227,947 for January through April 2025. This funding fully covers the Free Senior High School Programme, resolving previous challenges including feeding. The Minister concluded by urging continued support for the government’s efforts to strengthen MMDAs as engines of local economic development.
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