The Minister of Finance, Dr Cassiel Ato Forson has announced a bold policy aimed at revitalising the local economy by significantly increasing direct financial transfers to district assemblies in 2025.

According to him, GH¢6.1 billion out of the GH¢7.57 billion allocated in the 2025 Budget has been approved to be disbursed directly to Metropolitan, Municipal, and District Assemblies (MMDAs).

Delivering a statement in Parliament on Tuesday, June 3, 2025, Ato Forson emphasised that the move reflects the government's commitment in boosting economic growth.

"I wish to commend Members of this House for endorsing, as part of the 2025 Budget, Government’s proposal to ensure that a minimum of 80% of allocated DACF resources are transferred directly to the MMDAs. Through this policy initiative, Government is guaranteeing that approximately GH¢6.1 billion of the GH¢7.57 billion earmarked for 2025 will be disbursed directly to spur local economic activities at the district level," he said.

As part of the 2025 Budget, cabinet approved a set of guidelines o fully fund economic activities of District Assemblies.

He said these guidelines would empower District Assemblies to take charge of economic development initiatives tailored to their unique local needs.

The guidelines approved by cabinet

1. 25% of the amount transferred to the District Assemblies is to be utilised for the design and construction of 24-Hour Economy Model Markets.

2. 10% for the construct of health facilities (minimum of 2 CHPS compounds) per Assembly.

3. 10% for the construction of educational facilities (1 KG block, 1 primary school block and 1 Junior High School block).

4. 10% for the provision of potable water (minimum of 10 boreholes for rural Assemblies).

5. 10% for environmental sanitation (solid and liquid waste management).

6. 10% for the provision of school furniture.

7. 5% for the administration of the Assemblies, including monitoring and evaluation.

8. Recognising the need to complete abandoned legacy projects, including the numerous uncompleted structures left behind by the Middle Belt Development Authority, Coastal Development Authority and the Northern Development Authority, we have allocated a whopping 20% to fix the mess.

STATEMENT TO PARLIAMENT ON PAYMENTS TO STATUTORY FUNDS.

1.I am grateful for the opportunity to brief this august House on the payments to statutory funds.

2. As a Member of this House, I am fully cognisant of the considerable interest that Honourable Members attach to this… pic.twitter.com/iXXqbP5QRL

— Cassiel Ato Forson (PhD) (@Cassielforson) June 3, 2025