Mr. Iddrisu proposed a phased increase beginning in 2027, arguing that the move would strengthen decentralisation and give Metropolitan, Municipal and District Assemblies (MMDAs) greater financial independence to provide essential services.

Speaking at the second National Dialogue on Decentralisation and Responsive Governance on Monday, August 10, the Education Minister suggested increasing the DACF allocation by one percentage point in 2027 and another one percentage point in 2028.

“Now, the elephant in the room is the District Assemblies Common Fund. We said in the NDC manifesto that we would adjust the DACF from 5% to 7.5%. So, as a government, we have said that we will increase the DACF,” he said.

He noted that the DACF allocation under the administration of former President John Evans Atta Mills stood at 7.5%, arguing that the proposed gradual increase would enable the government to return to that level while fulfilling its manifesto commitment.

“The DACF under the Atta Mills government was 7.5%, so we want to walk gingerly and gradually towards the same. In 2027, you can give one per cent, and in 2028 add another one per cent, and we would have honoured the manifesto pledge of adjusting the DACF to 7.5%,” Mr. Iddrisu added.

The Minister said the additional allocation would support the government’s decentralisation agenda, including plans to deepen the responsibilities of local authorities in the delivery of health and education services.

He proposed that one percentage point of the increase could be dedicated to healthcare, enabling metropolitan and other assemblies to recruit health professionals directly.

“President Mahama’s thinking and vision on deepening democratic decentralisation, including the election of MMDCEs, is to dedicate that one per cent increase to health, decentralisation and devolution,” he said.

Mr. Iddrisu said the additional funding would allow assemblies to recruit doctors and nurses based on their local needs.

He further proposed that another percentage point be allocated to education to support the devolution and democratisation of education services.

The Education Minister stressed that the proposals formed part of principles agreed upon by the government and should not be abandoned.

He argued that stronger financial autonomy for MMDAs was essential if Ghana was to achieve meaningful decentralisation and improve accountability at the local level.

Mr. Iddrisu also warned against excessive dependence by local assemblies on releases from central government, saying such arrangements could undermine their ability to effectively perform their functions.

He maintained that decentralisation could not work effectively without predictable and adequate funding through the DACF.

“But we can’t do it if the DACF is not available. Maybe the Local Government Minister can’t say it, but I’ll say it for him: if he is going to rely on releases from the Finance Ministry, the ministry won’t function effectively,” he said.

Drawing a comparison with his own ministry, Mr. Iddrisu added: “Just like me, the Education Minister, I won’t function well without GETFund.”

He said increasing the DACF would therefore be critical to empowering MMDAs to take greater responsibility for local development and ensuring that decentralisation translates into improved services for citizens.

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