March 30, 2014

Parliament on Friday approved the formula for the distribution of an amount of GHC 1,369,764,728 allocated to the District Assemblies Common Fund in the 2014 Budget.

The House recommended to the Ministry of Finance to consider the issue of release of Funds very seriously as the matter borders on infringement on the laws of Ghana, adding that the Minister of Finance should therefore ensure that this statutory obligation is fulfilled by the timely payment of all arrears due the Fund.

The Administrator of the Fund was also entreated to ensure that realistic data is provided by the central sources to enable the fund share the available resources fairly and equitably for equitable development.

It was observed that the District Assembly Common Fund (DACF) owes beneficiary institutions for both 3rd and 4th Quarter of 2013 due to non-release of funds by the Ministry of Finance and this situation has negatively impacted on the growth and development of the MMDAs.

Parliament is mandated by Article 252(2) of the 1992 Constitution of Ghana and the District Assembly Common Fund Act,1993(Act 455) to make provision for the allocation of not less than 5% of the total revenue of Ghana to the DACF for the implementation of developmental programmes in the MMDAs.

As at now 7.5% of the total tax revenue of Ghana is allocated to the DACF.

By the provision of Section 7(a) of the District Assembly Common Fund Act 1993(Act 455), the Administrator of the Fund is to propose annually for the consideration and approval of Parliament a formula for sharing the Common Fund.