Minister for Finance, Dr. Cassiel Ato Forson, has announced major disbursements to statutory funds, assuring Parliament of the government’s resolve to fully implement decentralisation and address critical funding gaps across key sectors.
Presenting a statement to Parliament on Tuesday, Dr. Forson disclosed that GH¢987.97 million has been transferred to the District Assembly Common Fund (DACF) for the first quarter of 2025. Of this amount, 80%—approximately GH¢790 million—will be directly disbursed to Metropolitan, Municipal, and District Assemblies (MMDAs) across the country.
“This measure will empower Assemblies to drive economic growth at the local level and deepen the process of decentralisation,” the Finance Minister declared.
Dr. Forson attributed the renewed commitment to local governance to the vision of President John Dramani Mahama, who he said is determined to reverse the financial centralisation witnessed in the past eight years.
“The government under President Mahama is resolute in its determination to reverse this trend. We are committed to adequately resourcing MMDAs and ensuring the effective and accountable utilisation of these resources,” he stressed.
He criticised the erstwhile New Patriotic Party (NPP) administrations of starving Assemblies of funds, noting that only 40-50% of DACF allocations reached the Assemblies under previous governments.
Meanwhile, Cabinet has approved utilisation guidelines for the DACF, with funds earmarked for various local development priorities, including:
25% for the design and construction of 24-Hour Economy Model Markets; 10% each for health, education, potable water, sanitation, and school furniture; 5% for administration, monitoring and evaluation and 20% for completing abandoned development authority projects
“We are steadfast in our resolve to ensure strict adherence to the utilisation guidelines,” Dr. Forson said.
He also revealed that the National Health Insurance Fund (NHIF) has received GH¢2.03 billion for the first quarter, enabling the settlement of arrears to healthcare providers and the implementation of the ‘Mahama Care’ initiative – a free primary healthcare programme. Similarly, the Ghana Education Trust Fund (GETFund) received GH¢2.71 billion from January to April 2025.
This, Dr. Forson noted, has ensured full funding for the Free Senior High School Programme, resolving long-standing issues such as food shortages and delayed capitation grants.
“These payments are a clear reflection of our commitment to meet all statutory obligations in our priority sectors,” the Minister stated and urged MPs to monitor fund usage in their constituencies and to hold Assemblies accountable.
“Honourable Members are encouraged to monitor the utilisation of these amounts sent to their respective assemblies in line with the approved guidelines,” he said.
The Finance Minister reaffirmed the government’s broader goal of economic transformation from the ground up and urged Ghanaians to work together to strengthen the MMDAs and position them as engines of local economic development.
