District Assembly Common Fund (DACF)

Article 242 of the District Assembly Common Fund Act of 1993 (Act 455) establishes the District Assembly Common Fund.

The goal of creating this fund is to offer money to help the local government’s development efforts.

It’s a fund created from the consolidated fund to transmit development funds from the federal government to local governments.

The District Assemblies Common Fund (DACF) is a resource pool established under Ghana’s 1992 constitution’s section 252.

It is a set aside of at least 5% of national revenue to be redistributed to all Ghanaian District Assemblies according to a formula approved by Parliament.

Purpose of the DACF

1. a) The Fund is to ensure equitable distribution of the national resources for the development in every part of Ghana. b) To Improve Housing Schemes.
2. c) To support sanitation management
3. d) It is to strengthen decentralization and to promote Sustainable self-help development communities. e) To improve upon primary health care delivery in all parts of Ghana
4. f) It is to improve the country’s educational facilities, and to ensure quality education g) The Fund support Community policing.

Sources of money into the fund

The District Assembly Common fund is financed from the following sources:

1. a) A minimum of 5% of total tax revenue is transferred quarterly into the fund.
2. b) Income from investment of the fund
3. c) Donations and Grants

2.8.3 Expenditures Charged on the fund

1. a) Disbursement to MMDAs/MPs
2. b) Disbursement to RCCs
3. c) Direct expenditures on behalf of MMDAs (reserves)
4. d) Administrative expenses directly related to funding administration (audit fee, bank charges, etc.)

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