The Minister for Education and Member of Parliament for Tamale South, Haruna Iddrisu, has spearheaded a significant push to increase the District Assemblies Common Fund (DACF) allocation from 5% to 7.5% of the country’s total projected revenues, a move intended to bolster decentralisation and empower Metropolitan, Municipal, and District Assemblies (MMDAs) to deliver essential services more effectively. This proposal, detailed in a recent announcement, reflects a commitment to strengthening Ghana’s decentralized governance structure.
Mr. Iddrisu explained that the current DACF allocation, currently standing at 7.5%, was established under the NDC manifesto in 2012 and represents a significant commitment to the government’s vision of decentralisation. He proposed a phased increase beginning in 2027, arguing that this gradual approach would allow the government to return to the 7.5% level while maintaining its commitment to the manifesto pledge. He further stated that the proposed increase could be implemented in increments of one percentage point in 2027 and another in 2028, ensuring that the government consistently honors its commitment.
Speaking at the second National Dialogue on Decentralisation and Responsive Governance, held on August 10, 2023, Mr. Iddrisu emphasized the importance of revisiting the DACF allocation. He highlighted that the NDC manifesto stipulated a 1% increase in the DACF in 2027 and another 1% in 2028, and he stated that the government intends to follow this timeline.
His remarks were echoed by a quote from former President John Evans Atta Mills, who noted that the DACF under his administration had been at 7.5% for a considerable period. He argued that the proposed gradual increase would enable the government to return to this level while fulfilling its manifesto commitment, stating that the DACF under the Atta Mills government had been at 7.5%.”
The Minister further stressed the crucial role of the DACF in supporting the government’s decentralisation agenda, specifically its focus on deepening the responsibilities of local authorities in providing healthcare and education services. He proposed dedicating one percentage point of the increase to healthcare, enabling metropolitan and other assemblies to recruit directly. Furthermore, he suggested allocating another percentage point to education to support the devolution and democratisation of education services.
He added that President Mahama’s approach to deepening democratic decentralisation, including the election of MMDCEs, has placed a significant emphasis on dedicating one per cent increase to health, decentralisation and devolution. He further stated that it’s imperative that the DACF is available to support these efforts, emphasizing that the lack of adequate funding could hinder the effective functioning of local assemblies.
Mr. Iddrisu concluded by warning against excessive reliance on releases from central government, stressing that this arrangement could undermine the ability of local assemblies to effectively perform their functions. He maintained that decentralisation is contingent on predictable and adequate funding through the DACF, and that without this, the government’s goals will be significantly hampered.
The Ministry of Finance is currently undertaking a financial probe into the Asante Berko bribery scandal, which highlights the importance of ensuring the proper management of funds allocated to local government entities. Mr. Iddrisu reiterated the importance of strengthening financial autonomy for MMDAs to ensure accountability and improved service delivery to citizens.
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Source: Adom Online
