MMDAs improve financial compliance to 66.2 percent

    Ghana's local assemblies show significant progress in public financial management, but further discipline is urged.

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    Ghana's Metropolitan, Municipal, and District Assemblies (MMDAs) have significantly improved their financial compliance, achieving a 66.2 percent score in 2025. This marks a substantial increase from 33 percent recorded in 2024, according to the latest Public Financial Management Compliance League Table (PFMCLT) assessment.

    This improvement indicates a stronger commitment by local government bodies to adhere to public financial management laws and regulations. The progress was highlighted at a town hall meeting in Tamale, organized by the Centre for Local Governance Advocacy (CLGA) with support from the European Union. The meeting aimed to disseminate the PFMCLT findings and foster greater transparency.

    The enhanced compliance aligns with Ghana's broader efforts to strengthen public sector accountability and efficient resource utilization. Improved financial discipline at the local level is crucial for effective service delivery and sustainable development across the country. This trend supports the government's agenda for fiscal responsibility and good governance.

    Isaac Owusu, a Senior Research Officer at the Centre for Local Governance Advocacy (CLGA), emphasized the need for MMDAs to consolidate these gains. He stated, "Although the improvement is encouraging, there is a need to do more. We expect all the assemblies in the region to score above 50 percent." Mr. Owusu urged continued efforts towards higher compliance levels.

    The Northern Region demonstrated notable progress, with 11 out of its 16 MMDAs scoring above the 50 percent compliance mark in 2025. This compares favorably to only two assemblies achieving this threshold in 2024. This regional performance underscores the potential for widespread improvement across the country's local governance structures.

    Sustaining this momentum requires MMDAs to implement stronger internal controls and improve their reporting systems. Strict adherence to public financial management regulations will ensure value for money and enhance public confidence in local administration. These measures are vital for improving service delivery to citizens.

    The PFMCLT, now in its third assessment, evaluates compliance with financial laws, regulations, and accountability measures among public institutions. Its findings provide a critical benchmark for assessing the financial health and governance of MMDAs. The league table promotes public understanding of financial management and accountability in local governance.

    Further efforts are needed to address remaining gaps in public financial management practices. This includes continuous training for local government officials and robust oversight mechanisms. The goal is to achieve even higher compliance levels across all MMDAs, fostering a culture of fiscal prudence and transparency.

    The ongoing commitment to financial discipline will likely lead to more efficient use of public funds and better development outcomes. Decision-makers and citizens will be watching for continued progress in this area. The sustained improvement in compliance is essential for Ghana's economic stability and growth.

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