The Administrator of the District Assemblies Common Fund (DACF) is calling for a law that sets a specific timetable for releasing money. This aims to stop delays in sending funds. It also seeks to speed up development in districts across Ghana.
Michael Harry Yamson, the DACF Administrator, stated that delays in fund releases are stopping development projects. This happens even when budgets are approved and plans are ready. He explained that the difference between what is promised and what is actually released causes problems.
District assemblies create their budgets each year. However, they often cannot start projects because the money is late. Yamson noted that if funds are delayed until May, June, or even July, it forces assemblies to rush development plans. This leads to poor quality and unfinished projects. He pointed out that for the first five months of 2026, no significant development work could happen due to late funding.
Yakson believes a legal requirement for a release timetable is the solution. He suggested that the Ghana Revenue Authority (GRA) should automatically set aside and release the Common Fund's share. This money is a percentage, like 5%, 7%, or 10%, of what the GRA collects. The release should happen on the first day of each new quarter.
The DACF also plans to change how development is planned. It will move from district-wide budgets to a system focused on electoral areas. This change will use data from the Electoral Commission of Ghana. The goal is to make regional development fairer. This is especially important for less developed areas like the Oti Region. The fund wants to reduce differences between regions.
On generating more money, the DACF aims to get 15% of its total funds from private grants by 2028. The Fund also wants to work more with development finance groups. This will be done through the Community Partners Fund. These partnerships will support local development projects.
The DACF has faced issues with late payments before. In a related event, Parliament approved GHS 8.77 billion for the DACF. However, Members of Parliament raised concerns about unpaid arrears and funding for metropolitan areas. The Finance Minister previously announced that nearly GHS 1 billion was released for the first quarter of 2025. These challenges highlight the need for a more predictable and reliable funding system.