Question

Discuss the benefits of the District Assembly Common Fund in Ghana and explain the formula for its disbursement.

Answer 1

Q: Discuss the benefits of the District Assembly Common Fund in Ghana and explain the formula for its disbursement.

A: The District Assembly Common Fund (DACF) in Ghana was started in 1993 and an associated percentage was set aside in 2004 which was to be used by the Members of Parliament (MPs) of Ghana towards supporting local governments and legislators in development activities and projects in their constituencies in order to provide welfare schemes towards poverty-alleviation of the poor communities. The objective is the implementation of decentralisation of policies and programmes. The Office of the Administrator of the District Assemblies Common Fund was set up for the disbursement and monitoring of this fund to the Metropolitan, Municipal, and District Authorities (MMDAs). This Administrator's Office arrives at the DACF amount to be annually disbursed to the MMDAs based on the formula approved by Parliament and it is dependent on the collection and collation of data taking into consideration the needs of the MMDAs and the factors of equality and social needs. This disbursement amount can be changed annually depending on these factors. This is one of the sources of revenue to the MMDAs to carry out their development work in their respective constituencies. The Administrator's Office of the DACF also explores new technologies and factors that may be utilised in the development of the formula, disbursement, and the monitoring of the MMDAs.