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Government Boosts Common Fund Allocation to GHS 5 Billion in 2025, Driving Nationwide Development — Minister

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Minister for Local Government, Chieftaincy and Religious Affairs, Hon. Ahmed Ibrahim, has disclosed a sharp increase in the disbursement of the District Assemblies Common Fund (DACF) to Metropolitan, Municipal, and District Assemblies (MMDAs), highlighting a significant leap from 2024 to 2025.

According to the Minister, only GHS 362 million was released to MMDAs throughout the entire year of 2024. In contrast, a total of GHS 5 billion was disbursed in 2025 alone, marking what he described as an unprecedented improvement in funding support to local authorities.

The 2025 allocations were released in four quarters:

GHS 790,372,058.40 in the first quarter

GHS 1,464,983,309.60 in the second quarter

GHS 1,188,921,640.80 in the third quarter

GHS 1,592,706,391.20 in the fourth quarter.

Hon. Ibrahim noted that the funds were tied to specific development targets for all MMDAs. Each assembly was required to construct at least two Community-based Health Planning and Services (CHPS) compounds, three classroom blocks, and ten boreholes, while also completing ongoing legacy projects.

Additionally, 25 percent of the Common Fund was earmarked for the construction of 24-hour economy model markets across the country.

The Minister reported that the timely and increased release of funds has already begun yielding results. Currently, 494 CHPS compounds, 761 classroom blocks, 4,029 boreholes, and 2,755 legacy projects are at various stages of completion nationwide.

Furthermore, 261 24-hour economy model markets have been awarded on contract, with construction already underway on many of them.

Hon. Ibrahim emphasized that the enhanced funding and strict project requirements are aimed at accelerating grassroots development and improving access to essential services across Ghana.

By Blessed EDUAMOAH DADZIE

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