The Administrator of the District Assemblies Common Fund (DACF), Michael Yamson, has proposed a constitutional change that would allow Metropolitan, Municipal and District Assemblies (MMDAs) to retain up to 75% of the revenue they generate locally.
According to the proposal, the move would give local authorities greater financial independence and provide them with more resources to address development needs within their respective communities.
Yamson argues that giving MMDAs greater control over their internally generated funds could strengthen local governance and improve the ability of assemblies to finance projects without depending heavily on central government transfers.
The proposal comes amid ongoing discussions about how Ghana can deepen decentralisation and give local authorities more capacity to respond to the needs of residents.
Under the proposed arrangement, assemblies would retain a significantly larger share of their internally generated revenue, potentially giving them greater flexibility in planning and implementing development projects.
The DACF Administrator believes such a change could also encourage MMDAs to improve their revenue mobilisation efforts, since assemblies would have a stronger incentive to generate more funds if they were allowed to retain a substantial portion of what they collect.
The proposal is likely to generate further discussion about Ghana’s decentralization system, particularly regarding the balance between central government oversight and the financial independence of local authorities.
