Accra, March 17, – Parliament has approved the 2026 formula for the District Assemblies Common Fund (DACF), paving the way for the disbursement of GH¢8,769,707,900 to Ghana’s local assemblies.
The decision aligns with Article 252 of the 1992 Constitution, which requires that at least five per cent of national revenue be allocated to the Fund. This year’s allocation, representing five per cent of projected revenue, reflects a 16.78 per cent increase from the GH¢7.51 billion released in 2025.
Majority Leader Mahama Ayariga presented the DACF report in Parliament, seconded by Minority Leader Alexander Afenyo-Markin. Lawmakers commended the Ministry of Finance for releasing GH¢6.29 billion in 2025 across all quarters, ensuring Assemblies had access to timely funding.
The DACF Secretariat highlighted outstanding arrears from 2024 amounting to GH¢7.33 billion, urging Parliament to support verification and recovery to prevent shortfalls at the local level.
Some MPs also raised concerns about revenue caps introduced under the Petroleum Revenue Management Act, 2025 (Act 1138), which limits DACF contributions to five per cent. They argued that this conflicts with constitutional provisions, the Local Governance Act, 2016 (Act 936), and a 2019 Supreme Court ruling, calling for a review to ensure Assemblies receive their fair share.
The 2026 distribution formula incorporates multiple indicators, including population, education, health services, water access, and road networks, with data drawn from agencies such as the Ghana Statistical Service, Ministry of Education, Ghana Health Service, Community Water and Sanitation Agency, Ghana Water Company, and the Departments of Urban and Feeder Roads.
A “service pressure factor” was also added to support urban Assemblies that host large transient populations. Additionally, the location quotient method prioritises resources for less-endowed districts, promoting fairness in allocations.
With the formula approved, 261 Metropolitan, Municipal, and District Assemblies will benefit from GH¢8.76 billion, reinforcing the government’s commitment to decentralisation and grassroots development.
GHBUSS
17 March 2026
No comments:
Post a Comment