Parliament has approved an increase in the District Assemblies Common Fund (DACF) allocation for 2026, with the total amount set at GH¢8.77 billion following the adoption of a new distribution formula.
The approval came after the House considered and adopted the report of the Committee of the Whole on Tuesday, March 17, paving the way for the disbursement of funds to support local governance and development initiatives across the country.
Majority Leader Mahama Ayariga, who presented the committee’s report, explained that the allocation represents five per cent of the country’s projected total revenue for 2026, in line with statutory requirements.
The approved figure marks a notable increase from the GH¢7.51 billion allocated in 2025, reflecting a 16.78 per cent rise. The increment is expected to boost the capacity of Metropolitan, Municipal and District Assemblies (MMDAs) to undertake infrastructure and social development projects.
Despite the upward adjustment, concerns were raised on the floor of Parliament over delays in the release of funds and the growing number of stalled projects across various districts.
Majority Chief Whip and South Dayi MP Rockson-Nelson Etse Kwami Dafeamekpor urged the Finance Minister to prioritise the settlement of arrears and ensure timely disbursement of funds. He stressed the need to complete numerous legacy projects that remain unfinished due to funding constraints.
The DACF remains a critical source of funding for local authorities, supporting projects in areas such as education, healthcare, sanitation and rural infrastructure. The latest approval is expected to play a key role in advancing decentralisation and improving service delivery at the grassroots level.
