In a significant policy announcement, the Minister for Finance, Dr. Cassiel Ato Forson, has disclosed that each Metropolitan, Municipal, and District Assembly (MMDA) will receive a minimum of GHS 25 million in 2025 to support local development initiatives across Ghana.
Addressing Parliament on Tuesday, June 3, 2025, Dr. Forson confirmed that an estimated GHS 987,965,073 has already been disbursed for the first quarter into the District Assemblies Common Fund (DACF), for equitable distribution among the 261 MMDAs nationwide.
“Mr. Speaker, we have transferred the sum of Nine Hundred and Eighty-Seven Million, Nine Hundred and Sixty-Five Thousand and Seventy-Three Ghana Cedis (GHS 987,965,073.00) from the Consolidated Fund into the District Assembly Common Fund Account,” Dr. Forson announced.
The Ajumako-Enyan-Essiam MP noted that the allocation is part of a broader strategy to promote decentralised development under President John Mahama’s administration.
He revealed that Cabinet has approved comprehensive guidelines to ensure the funds are used efficiently and transparently, with specific targets to address key socioeconomic needs.
Breakdown of Fund Allocation
Cabinet’s approved spending framework for the MMDAs includes the following allocations:
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25% – Construction of 24-Hour Economy Model Markets
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10% – Construction of Health Facilities (minimum of 2 CHPS compounds per assembly)
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10% – Educational Infrastructure (KG, Primary, and JHS blocks)
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10% – Provision of Potable Water (minimum of 10 boreholes for rural assemblies)
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10% – Environmental Sanitation (solid and liquid waste management)
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10% – Provision of School Furniture
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5% – Administrative Expenses, Monitoring, and Evaluation
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20% – Completion of Abandoned Development Projects, especially those under the Middle Belt, Coastal, and Northern Development Authorities
Dr. Forson emphasized the need for strict accountability, instructing the Administrator of the DACF to ensure that 80% of all transfers go directly to the assemblies, with mandatory expenditure reporting before further releases are made.
“The Administrator of the District Assembly Common Fund is required to ensure that 80% of this amount is transferred directly to the assemblies without fail, and expenditure returns submitted to the Ministry of Finance before subsequent releases will be made,” he warned.
Additional Statutory Payments Fulfilled
The finance minister also confirmed that all statutory payments due to other critical national agencies have been fully honored for the first four months of the year.
These include:
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GHS 2.03 billion disbursed to the National Health Insurance Fund covering January to March 2025.
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Payments to the Ghana Education Trust Fund (GETFund) and other statutory recipients completed as scheduled.
Dr. Forson concluded by urging Members of Parliament to actively monitor how funds are utilized in their constituencies to ensure compliance with the approved spending guidelines.
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