Effects of the District Assembly Common Fund (DACF) on socio-economic development in Ghana: a case study of Tano-South District assembly in the Brong Ahafo Region of Ghana

Abstract

The District Assembly Common Fund (DACF) is an important component of the operationalisation of the decentralisation agenda in Ghana. Over the years, the fund has increasingly become the main source of funds for the Metropolitan, Municipal and District Assemblies (MMDAs). The effect of the fund on the development of the Tano-South District Assembly is the focus of this study. Using both primary and secondary data, the effect of the fund on socio-economic development is studied. The key finding of the study is that the Fund has had a positive effect on the socio-economic development of the District. Other findings include; delay in disbursement of funds from the central government, the decline of IGFs by the assembly as a percentage of total revenue, low participation of citizens in the choice of projects the fund should be used for. Also, there is a lot of deduction at source so the funds that finally get to the assembly is inadequate to effect the needed change. The study recommends that IGF mobilisation should be improved, there should be a timely disbursement of funds and local participation in the decision making processes of the assembly should be strengthened.