Government has proposed a new formula for the disbursement of the District Assemblies Common Fund (DACF) that will see 93 percent of the fund transferred directly to the local level to support development activities across the country.
The proposal, which represents a 10 percent increase from the 2025 formula approved by Parliament, is aimed at deepening decentralisation and strengthening development at the district level.
The proposed 2026 DACF formula has received Cabinet approval and has been laid before Parliament for consideration.
Under the new formula, 80 percent of the fund will go directly to Metropolitan, Municipal and District Assemblies (MMDAs) to finance local development projects and administrative activities.
An additional 5 percent will be allocated to support Persons with Disabilities (PWDs) through social intervention programmes, while another 5 percent will go to Members of Parliament to assist with labour and development initiatives in their constituencies. A further 3 percent has been earmarked for project monitoring and evaluation.
Together, these allocations will bring the total amount transferred directly to the local level to 93 percent of the District Assemblies Common Fund.
Parliament is expected to deliberate on the proposed formula on March 12, 2026, when the House sits as a Committee of the Whole.
The Minister for Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, is expected to lead the government’s case on the floor of Parliament and steer the approval process.
Once approved, the formula will guide the distribution of the DACF for the 2026 fiscal year.
Article 252 of the 1992 Constitution provides that not less than five percent of Ghana’s total revenue must be paid into the District Assemblies Common Fund to support local governance and development.
In line with this provision, Parliament has allocated GH¢8,769,707,000 to the DACF under the 2026 Appropriation Act for use during the 2026 fiscal year.
Local governance analysts have welcomed the proposed formula, particularly the increased allocation to district assemblies and persons with disabilities.
According to them, directing a larger share of the fund to the local level could strengthen community development, promote social inclusion and improve monitoring of development projects while reinforcing Ghana’s decentralisation framework.
The District Assemblies Common Fund is a constitutionally mandated fund that distributes a portion of national revenue to support development activities across Ghana’s districts.
