The Minister for Local Government, Chieftaincy and Religious Affairs, Hon. Ahmed Ibrahim, has announced that the government released GHS 5 billion to Metropolitan, Municipal, and District Assemblies in 2025 through the District Assemblies Common Fund.
Speaking at the Government Accountability Series held at Jubilee House, the Minister described the disbursement as a significant improvement compared to the previous year.
He revealed that in the entire 2024 fiscal year, only GHS 362 million was released to assemblies, highlighting a sharp contrast with the current allocation.
According to him, the increase reflects the government’s commitment to decentralisation and local development, ensuring that assemblies have the resources needed to implement key projects.
Quarterly Breakdown of Funds
Providing details of the disbursement, the Minister outlined how the funds were released across the four quarters of 2025. He stated that GHS 790.3 million was allocated in the first quarter, followed by GHS 1.46 billion in the second quarter.
In the third quarter, assemblies received GHS 1.18 billion, while the fourth quarter saw the highest allocation of GHS 1.59 billion. He explained that the structured release of funds was designed to support continuous project execution throughout the year.
The Minister noted that timely disbursement was critical in enabling assemblies to plan effectively and avoid delays that have historically affected development projects.
Hon Ahmed Ibrahim indicated that all assemblies were required to channel the funds into specific priority projects aimed at improving local infrastructure and services.
He explained that each assembly was mandated to construct at least two Community based Health Planning and Services compounds, three classroom blocks, and ten boreholes.
In addition, assemblies were tasked with completing ongoing legacy projects that had been left unfinished. These requirements, he said, were designed to ensure that the funds translated into tangible benefits for communities.
He emphasized that these interventions target essential sectors such as healthcare, education, and water access, which are critical to improving living conditions.
Progress on Infrastructure Delivery
The Minister reported that the release of funds has already resulted in significant progress across the country. He stated that 494 CHPS compounds are currently at various stages of completion, alongside 761 classroom blocks.
He added that 4,029 boreholes are being developed to improve access to clean water, while 2,755 legacy projects are also being completed. According to him, these figures demonstrate the impact of increased funding and improved coordination at the local level.
He noted that the projects are spread across all regions, ensuring equitable development and addressing infrastructure gaps in both urban and rural areas.
A key component of the fund allocation is the commitment to the government’s 24 hour economy policy. The Minister disclosed that 25 percent of the Common Fund was dedicated to the construction of model markets designed to support round the clock economic activity.
He revealed that 261 of these markets have already been awarded on contract, with construction underway in many locations. The initiative, he said, is expected to boost local commerce, create jobs, and enhance economic productivity.
He explained that the markets will provide modern trading facilities, enabling businesses to operate more efficiently and extend their activities beyond traditional hours.
Strengthening Decentralised Development
Hon Ahmed Ibrahim emphasized that the significant increase in funding underscores the government’s commitment to empowering local authorities. He noted that decentralisation remains a key pillar of national development, as it allows communities to address their unique needs more effectively.
He stated that by providing assemblies with adequate resources, the government is enabling them to take ownership of development projects and deliver services closer to the people.
He also highlighted the importance of accountability, noting that assemblies are expected to ensure that funds are used efficiently and transparently.
The Minister expressed confidence that the increased funding will lead to sustained improvements in infrastructure and service delivery across the country. He indicated that the government will continue to prioritise timely releases to maintain the momentum achieved in 2025.
He added that ongoing monitoring and evaluation will be essential to ensure that projects are completed on schedule and meet the required standards.
Hon Ahmed Ibrahim concluded that the record disbursement marks a turning point in the management of the District Assemblies Common Fund, positioning it as a more effective tool for driving grassroots development.
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