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Approx. 114 million 2nd Quarter District Assembly Common Fund Released

The Administrator of the District Assembly Common Fund (DACF), Mr. Kojo Fynn announced to all Metropolitan, Municipal and District Assemblies (MMDAs), and the general public of the disbursement of the Common Fund to all MMDAs for the 2nd Quarter (1st April-30th June) of the 2015 Budget year.

A total amount of GH¢113,807,724.20 million was disbursed and is to be shared among all the 216 MMDAs found in the 10 Regions of Ghana. The graph below (Figure 1) shows the total number of MMDAs in each Region and the Regional distribution of the Common Fund to the MMDAs.

Figure 1: Regional Disbursement of Common Fund

Figure1 Common Fund

According to the caption, Series 1 is the total number of MMDAs found in each region of Ghana, while Series 2 represents the Regional distribution of the Common Fund to MMDAs.

Penplubytes’ “Grassroots Open Government Using New Digital Tools” launched in the Ada East District Assembly on the 26th of August and the Tamale Metropolitan Assembly on 10th September seeks to promote information sharing between citizens and the two Assemblies. The project through the use of an integrated approach seeks to help citizens understand among other things, the expenditure patterns and the specific amount coming into the two Assemblies as revenue.

For the 2015 budget year, the Tamale Metropolitan Assembly (TaMA) has just received a total of GH¢685,805.35 Ghana cedis as its share of the Common Fund for the 2nd Quarter (1st April-30th June, 2015). TaMA’s share is about 5% of the total amount (GH¢ 13,973,698.45) allocated to all the 26 MMDAs in the Northern Region.

Ada East District Assembly on the other hand was allocated GH¢457,507.05 as its share of the Common Fund for the 2nd Quarter (1st April-30th June, 2015). The amount allocated to Ada East as its share of the Common Fund is about 4.3% of the total amount (GH¢ 10,577,817.67) disbursed to all the 16 MMDAs in the Greater Accra Region.

DACF: A Brief History

The DACF was created under Article 252 of the 1992 Constitution of Ghana. The Common Fund Act (Act 455) was passed by Parliament on the 6th of July, 1993 to serve as a development Fund that is intended to ensure equitable development of the various Assemblies in the country.

According to the Act, Parliament is required to make provision for an annual allocation of a minimum of 5% of the total revenue accrued by the nation to be shared for all District Assemblies. This amount is supposed to be paid into the DACF in quarterly installments and it is be shared among all the District Assemblies on the basis of a Formula approved by Parliament. 

The Formula outlines the various factors that are taken into consideration in determining the amount each Assembly receives. These factors include among other things the availability of health and education services, water coverage and tarred road coverage in the respective Districts. Other factors considered also include the performance of the District in generating its own revenue. This according to www.ghanadistrict.com is captured under the ‘responsive factor’ which rewards MMDAs for improvements in their Internally Generated Funds (IGF) using a base year as the basis.

It is important however to note that, the actual amount that finally goes to each Assembly, depends on the actual national tax revenues collected in the year in question.

 

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