In: Accounting
discuss the benefits of the district assembly common fund and explain the formula for its disbursement
Benefits of the district assembly common fund -
1) The fund helps in expanding the health facilities and makes health delivery accessible to many people.
2) The funds help in creation of jobs for all through different programs
3) The funds help more people to gain shelter through housing
4) The funds supports communities that initiates their own development projects
5) The funds help In constructing schools buildings and structures for increasing need of population
Formula for district assembly common fund disbursement –
Part of the fund is transferred directly to District Assemblies as per approved formula; this disbursement is also called as direct transfer. The MMDAs use funds for programs and projects determined by respective assemblies. Some money of the fund is used for social intervention projects which take place in the Districts but are national in scope; this disbursement is also called indirect transfer. Some programs under indirect transfer are GYEEDA, Schools feeding programs, etc. About 4% of the fund is shared to Members of Parliament, 1.5% is shared among the 10 Regional Co-coordinating Councils and 2% is reserved to meet contingency expenses.