The Ghanaian government has released GHS 9.1 billion from the District Assemblies Common Fund (DACF) to Metropolitan, Municipal, and District Assemblies (MMDAs) nationwide. This substantial disbursement covers six quarters, specifically all four quarters of 2025 and the first two quarters of 2026.
This significant financial injection aims to provide crucial socioeconomic infrastructure and improve living conditions for Ghanaians at the local level. The funds represent a notable increase in support for grassroots development initiatives across the country.
This release fits into Ghana's broader economic strategy to strengthen decentralization and local governance. Historically, timely and adequate funding for MMDAs has been a challenge, impacting their ability to deliver essential services. The current administration's commitment to disbursing a higher percentage of the Common Fund directly to assemblies signals a shift towards empowering local authorities.
Mr. Mahama Ayariga, the Minister of Local Government, Chieftaincy and Religious Affairs, announced this development. Speaking at the Government Accountability Series Press Conference in Accra, he highlighted the government's resolve to advance local government decentralization. The Minister stated that 88 percent of the total Common Fund allocation now goes directly to MMDAs, exceeding the President's initial target of 80 percent.
The increased funding is expected to accelerate ongoing development projects and initiate new ones across all 261 MMDAs. This financial boost will enable local assemblies to award new contracts and ensure contractors move to sites promptly. The enhanced capacity at the local level is crucial for addressing community needs and driving progress.
Comparing disbursements, MMDAs received GHS 390 million in 2024 under the previous New Patriotic Party (NPP) administration. In contrast, disbursements surged to over GHS 5 billion in 2025 alone under the current National Democratic Congress (NDC) administration. This represents a more than twelve-fold increase in funding for local development.
For instance, the Ketu South Municipal Assembly received GHS 1.31 million in 2024. Its allocations climbed to GHS 18.44 million for the first three quarters of 2025. Furthermore, it received GHS 21.82 million for Q4 2025 and the first two quarters of 2026 combined. This demonstrates the significant impact of the increased funding at the district level.
Nationwide, the increased funds have already contributed to completing 397 out of 566 targeted CHPS compounds. They have also funded 502 out of 761 classroom blocks and 3,081 out of 4,029 mechanized boreholes. Additionally, 97 out of 134 small-town water systems are now complete, alongside various major sanitation projects. These projects directly benefit communities by improving access to healthcare, education, water, and sanitation.
The government also uses the District Assemblies Performance Assessment Tool (D-PATs) to incentivize good performance. Assemblies that meet specific criteria receive additional grants from development partners. Approximately GHS 840 million has been transferred this year to MMDAs for implementing their annual action plans through the D-PAT program. This system encourages efficiency and accountability in local governance.
Furthermore, the Ministry has facilitated the release of GHS 107 million in 2025 and GHS 106 million for 2026 for consolidated monthly allowances for assembly members. This marks the first time in local governance history that such a significant and consistent disbursement has occurred. The Controller and Accountant General has transferred this year's funds, and assembly members expect to receive them soon. This initiative aims to empower assembly members and enhance their effectiveness in serving their constituents.