The Minister for Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, has revealed a significant increase in disbursements to Metropolitan, Municipal and District Assemblies (MMDAs), with funding rising sharply from GH¢362 million in 2024 to GH¢5 billion in 2025.
According to the Minister, the 2024 allocation from the District Assemblies Common Fund (DACF) fell far short of expectations, affecting development at the local level.
However, he noted that the situation improved considerably in 2025 following the introduction of a structured quarterly disbursement system designed to ensure consistency and predictability in funding.
Speaking at the government’s Accountability Series in Accra on Monday, April 20, Mr. Ibrahim outlined the 2025 quarterly releases as follows:
- First Quarter: GH¢790,372,058.40
- Second Quarter: GH¢1,464,983,309.60
- Third Quarter: GH¢1,188,921,640.80
- Fourth Quarter: GH¢1,592,706,391.20
The fourth quarter recorded the highest disbursement, reflecting what the Minister described as improved fiscal coordination and commitment to local governance.
Development Targets for Assemblies
Mr. Ibrahim explained that the increased funding comes with clear development obligations for all MMDAs. Each district is expected to deliver:
- At least two Community-based Health Planning and Services (CHPS) compounds
- Three classroom blocks
- Ten boreholes
- Completion of ongoing legacy projects
He added that 25 percent of the Common Fund has been earmarked for the development of 24-hour economy model markets, in line with government’s efforts to boost local economic activity and job creation.
The Minister stressed that timely and adequate funding remains critical to strengthening decentralisation and improving service delivery at the grassroots level.