The government has proposed a new formula for 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 move represents a 10 percent increase from the 2025 formula previously approved by Parliament, signalling government’s push to deepen decentralisation and enhance development at the district level.
The proposed 2026 DACF formula has reportedly received approval from Cabinet and has been laid before Parliament for consideration.
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Under the proposed formula, 80 percent of the fund will be transferred directly to Metropolitan, Municipal and District Assemblies (MMDAs) to finance local development projects and administrative activities.
The remaining allocations include: 5 percent dedicated to Persons with Disabilities (PWDs) to support social intervention programmes; 5 percent allocated for Members of Parliament to support labour and development activities in their constituencies and 3 percent earmarked for project monitoring and evaluation.
Together, these allocations 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 government’s case on the floor of Parliament and guide the approval process.
Once approved, the formula will guide the distribution of the DACF for the 2026 fiscal year.
The 1992 Constitution provides under Article 252 that not less than 5% of total revenue shall be allocated into the District Assemblies Common Fund (DACF).
Based on this, Parliament enacted the 2026 Appropriation Act and allocated an amount of Eight billion, seven hundred and sixty-nine million, seven hundred and seven thousand, nine hundred Ghana Cedis (GH¢8,769,707,00) to the DACF for application in the 2026 fiscal year.
Local governance analysts have welcomed the proposed formula, particularly the increased allocations to district assemblies and persons with disabilities.
They argue that directing a larger share of the fund to the local level will help improve community development, social inclusion, and project monitoring, while strengthening Ghana’s decentralisation framework.
The District Assemblies Common Fund is a constitutionally mandated fund that allocates a portion of national revenue to support development activities at the district level.
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