Accra, Ghana — The proposed 2026 formula for the distribution of the District Assemblies Common Fund (DACF) places significant emphasis on direct funding to Metropolitan, Municipal and District Assemblies (MMDAs), with 90 percent of the total allocation earmarked for direct transfers to the districts.
According to the proposal submitted to Parliament, the DACF for the 2026 fiscal year stands at GH¢8.77 billion, representing an increase from the GH¢7.51 billion allocated in 2025.
Of this amount, GH¢7.98 billion—representing 90 percent of the total fund—will be transferred directly to MMDAs to support local development projects, infrastructure and service delivery at the district level.
The DACF Secretariat explained that the move is intended to strengthen decentralisation by ensuring that a larger portion of national resources reaches local authorities responsible for implementing development programmes.
Direct Allocations for MPs’ Constituency Projects
The formula also provides a dedicated allocation for Members of Parliament (MPs) to support development initiatives within their constituencies.
Under the proposal, GH¢438.5 million—equivalent to 5 percent of the total DACF—has been allocated for Constituency Labour Projects undertaken by MPs.
2026 Draft Formula 20260211
The funds are expected to be shared equally among all Members of Parliament, with the Metropolitan, Municipal and District Assemblies responsible for accounting for the expenditure through their financial reporting systems.
The allocation is designed to support MPs in implementing small-scale infrastructure and community development projects, including school facilities, sanitation works and other local interventions identified by constituents.
Funding for Persons with Disabilities Increased
Another 5 percent of the total DACF, amounting to GH¢438.5 million, has been earmarked for programmes supporting Persons with Disabilities (PWDs) across the districts.
The allocation represents an increase from the previous 3 percent allocation, signalling government’s effort to improve social protection and economic empowerment for persons living with disabilities.
Net Transfers to District Assemblies
After accounting for the dedicated allocations, a net amount of about GH¢7.02 billion will go directly to the 261 Metropolitan, Municipal and District Assemblies for development projects and essential service delivery.
These funds will be used by district assemblies to finance key local priorities such as:
Construction and rehabilitation of schools and health facilities
Road and drainage projects
Water and sanitation infrastructure
Local economic development initiatives
Parliament to Approve DACF Formula
The DACF distribution formula must be approved by Parliament each year before the funds can be disbursed to the districts.
The DACF Secretariat believes the 2026 proposal, with its strong focus on direct district funding and constituency-based projects, will enhance grassroots development and improve accountability in the use of public resources.
If approved, the formula will guide the distribution of the GH¢8.77 billion Common Fund among Ghana’s 261 Metropolitan, Municipal and District Assemblies for the 2026 fiscal year.
Source: Clement Akoloh||parliamentnews360.com
