Government releases over GH¢987m of DACF to Assemblies – Minister – Ghana Business News
The government has released more than GH¢987.96 million from the Consolidated Fund into the District Assemblies Common Fund (DACF), being the first quarter amount due the DACF for developmental projects at the Assemblies.
The Administrator of the District Assemblies Common Fund is supposed to transfer at least 80 per cent of the funds directly to the District, Municipal and Metropolitan Assemblies (MMDAs) for various projects.
Dr Cassiel Ato Forson, the Finance Minister, who announced this in a statement on the floor of the House on Tuesday, said the timely release of the statutory funds to the assemblies was at the heart of President Mahama-led Government’s fiscal decentralisation agenda.
Dr Forson said the Administrator of the DACF was required to ensure that 80% of the amount was transferred directly to the Assemblies without fail and expenditure returns submitted to the Ministry of Finance before subsequent releases would be made.
The Minister reaffirmed government’s commitment to spending taxpayer’s money judiciously, saying, “The era of reckless spending is over…we’ll not borrow recklessly, we’ll only spend when the money is available”.
The Minister explained that each Assembly was expected to receive GHS 25 million as statutory payment of the DACF, this year.
Based on the guidelines approved by Cabinet for utilisation of the funds, Dr Forson said, 25% of the amount would be used for the construction of model markets within the Assemblies and 10% would be utilised for the construction of health facilities, particularly two community-based health post (CHIP Compounds) in rural Assemblies.
Additionally, 10% of the amount would go to the construction of educational facilities with each Assembly expected to construct a kindergarten block, a primary school block and a junior high school block.
Also, 10% of the amount would go to the construction of potable water facilities with each Assembly, especially those in the rural areas for drilling of at least 10 boreholes.
The Minister said 10% of the amount would also go into the procurement of school furniture and 20% for fixing the abandoned legacy projects.
The Government had also allocated 5% for the administration of the Assemblies, including monitoring and evaluation.
“Right Honourable Speaker, these payments are a clear reflection of our commitment to meet all statutory obligations in our priority sectors.
“I encourage Honourable Members to continue to support our efforts as we chart a new course.
“Let us work together to strengthen the Metropolitan, Municipal and District Assemblies and position them as engines of local economic development,” Dr Forson stated.
The Minister encouraged the legislators to monitor the utilisation of the funds in their respective Assemblies in line with the approved guidelines by Cabinet.
The minister added that GH¢2.3 billion would be released to the National Health Insurance Fund (NHIF) constituting the first quarter of 2025 for payment of claims and GH¢2.7 billion for the Ghana Education Trust Fund (GETFund), which would cater for the Free Senior High School policy.
Source: GNA
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