Parliament Approves GH₵8.77bn District Development Fund
Parliament has approved the 2026 distribution formula for the District Assemblies Common Fund (DACF), setting the total allocation at GH₵8.77 billion to support local development across the country.
The new figure reflects a 16.78 per cent increase from the GH₵7.51 billion allocated in 2025, signalling a boost in funding for district-level projects and services. The allocation is based on five per cent of the country’s projected total revenue for 2026.
Out of the total amount, GH₵166.95 million has been set aside for priority infrastructure and development initiatives aligned with national policy goals. Additionally, GH₵68.73 million has been dedicated to support education-related programmes in selected districts, while GH₵98.22 million will go towards strategic and emergency intervention projects aimed at addressing critical development needs.
A portion of GH₵603.02 million has also been reserved for various projects, including GH₵87.70 million specifically targeted at districts facing severe socio-economic challenges. These areas often struggle with limited access to essential services such as healthcare, education, clean water and road infrastructure, alongside weak local revenue generation.
Despite the increased allocation, concerns have been raised over outstanding arrears. A report presented to Parliament indicated that the Fund recorded arrears amounting to GH₵7.33 billion for 2024, based on actual government revenue. Authorities are seeking support to validate and recover the outstanding amount to ensure smoother operations.
The report also highlighted the need for reforms to ensure more predictable and efficient funding flows. It called for the establishment of an automatic disbursement system to strengthen the effectiveness of decentralised governance and local development planning.
In support of monitoring and accountability, GH₵263 million has been earmarked to facilitate project tracking and evaluation activities at the constituency level.
Officials say the approved formula is expected to enhance service delivery, reduce development disparities among districts, and improve the overall impact of public investment at the local level.
