The Minister of Finance, Dr. Cassiel Ato Forson, has unveiled a bold new policy under the 2025 Budget aimed at revitalising local economies and advancing decentralisation across the country.

Announcing the initiative in Parliament, Dr. Forson revealed that the government has allocated GH¢7.51 billion to the District Assembly Common Fund (DACF), with at least 80%—equivalent to approximately GH¢6.1 billion—earmarked for direct disbursement to Metropolitan, Municipal, and District Assemblies (MMDAs).

Under the policy, every District Assembly is guaranteed a minimum of GH¢25 million, a significant increase from previous years. The Minister stressed that the funds must be used in alignment with clearly defined economic goals, with strict guidelines in place to ensure accountability and impact.

Notably, 25% of the transferred funds will be dedicated to the development of 24-Hour Economy Model Markets across the country—an initiative designed to support round-the-clock trading and stimulate job creation.

“This represents a clear break from the past, where less than half of the DACF reached our local authorities,” Dr. Forson stated. “We are now empowering our districts with real resources to drive growth from the ground up.”

He also lauded Parliament for endorsing the proposal, describing it as a strong endorsement of the government's commitment to fiscal decentralisation and inclusive economic development.

The move is expected to significantly strengthen the financial capacity of MMDAs, enabling them to undertake vital infrastructure and economic projects tailored to the needs of their communities