Parliament has approved the 2026 distribution formula for the District Assemblies Common Fund (DACF), allocating GH₵8.77 billion to support local governance and development across Ghana.

The approved figure represents a 16.78 per cent increase from the GH₵7.51 billion allocated in 2025, reflecting government efforts to boost funding for district-level development.

Allocation highlights

The DACF allocation is based on five per cent of projected national revenue for 2026. Key provisions include:

• GH₵166.95 million for priority infrastructure and development projects
• GH₵68.73 million for education programmes in selected districts
• GH₵98.22 million for strategic and intervention projects
• GH₵603.02 million reserved for various development initiatives, including GH₵87.70 million for distressed districts

Additionally, GH₵263 million has been set aside to support Members of Parliament in monitoring and evaluating constituency projects.

Arrears raise major concern

Despite the increase, concerns were raised over outstanding arrears. A report submitted by DACF Administrator Michael Harry Yamson indicated that GH₵7.33 billion in arrears from 2024 remains unpaid.

The Fund has called on Parliament to support efforts to verify and recover the outstanding amount, noting its impact on development projects nationwide.

Revenue capping questioned

The report also raised legal and constitutional concerns about the capping of DACF allocations under the Petroleum Revenue Management Act, 2025 (Act 1138), which limits the Fund to a maximum of five per cent.

According to the DACF, this cap contradicts Article 252 of the Constitution of Ghana, the Local Governance Act, 2016 (Act 936), and a 2019 ruling by the Supreme Court of Ghana.

The Fund has therefore urged Parliament to review and address the issue.

Calls for fiscal reforms

The DACF emphasised the need for broader fiscal reforms, including the establishment of a predictable and automatic funding mechanism to sustain decentralisation.

It argued that such reforms are essential to ensure the continued effectiveness of local governance structures.

Debate over distribution fairness

During deliberations, the Member of Parliament for Takoradi, Kwabena Okyere Darko-Mensah, welcomed the increase in the equality factor from 20 per cent to 40 per cent, describing it as a major step toward improving equity among districts.

He also noted that the needs factor had risen to 53 per cent, which he said would help address disparities across districts.

However, he raised concerns that metropolitan assemblies may have been underfunded and called for additional support to areas such as Sekondi-Takoradi, Kumasi and Tema.

Push to complete stalled projects

The Majority Chief Whip, Rockson-Nelson Dafeamekpor, highlighted the impact of arrears on more than 4,700 stalled projects across constituencies.

He urged the Finance Minister to prioritise the payment of arrears to enable the completion of these projects for community benefit.