Municipal and District Assemblies to Receive GHC25 Million for Grassroots Development

Ghana’s decentralisation agenda is set for a major breakthrough as the government allocates GH₵25 million to each Metropolitan, Municipal, and District Assembly (MMDA) — the largest single transfer in the country’s local governance history.

Announcing the initiative, Hon. Ahmed Ibrahim, Minister for Local Government, Chieftaincy and Religious Affairs, said the unprecedented disbursement aims to empower local authorities to accelerate grassroots development, create jobs, and strengthen fiscal autonomy at the district level.

The Minister emphasised that the initiative forms part of the government’s broader commitment to inclusive development and fiscal decentralisation, ensuring that every community benefits from national resources.

“This historic allocation is not just about money; it’s about trust, responsibility, and transformation. Each assembly must demonstrate that these funds are being used effectively to impact lives,” Hon. Ahmed Ibrahim stated.

He underscored the importance of strict accountability, transparency, and prudent financial management, urging MMDAs to draw lessons from Indonesia’s fiscal reform model, which successfully leveraged decentralised financing to boost local development and service delivery.

“We are learning from successful models like Indonesia, where strong fiscal discipline at the local level has transformed communities. Ghana can do the same — but only if we insist on accountability and performance at every level,” he added.

The funds are expected to support critical infrastructure projects, including roads, schools, markets, and water systems, while enhancing local government capacity to deliver essential public services.

The move has been widely hailed by policy experts and governance advocates as a landmark intervention in Ghana’s decentralisation process, marking a shift toward fiscal empowerment and bottom-up development.