The amount of money flowing from the District Assemblies Common Fund (DACF) to Metropolitan, Municipal and District Assemblies (MMDAs) has leapt from roughly GH¢390 million in 2024 to more than GH¢5 billion after recent reforms. This surge has raised fresh questions about whether local bodies can manage the larger resources responsibly, as nearly half of the assemblies still fall below minimum public financial management standards.
In response, the World Bank, together with the Ministry of Finance and other stakeholders, has launched a comprehensive assessment of public financial management at the sub‑national level. The exercise will cover 10 sub‑national Public Expenditure and Financial Accountability (PEFA) assessments and a broader report on all 261 districts, examining revenue mobilisation, expenditure management, procurement, payroll and the predictability of central transfers.
Raymond Muhula, a World Bank representative, said at the launch of the working group that the increased funding must be matched by stronger accountability and service delivery systems. “It’s a major shift in how public money is managed at the local level. So we need to find out what are the systems, what are the mechanisms that are safeguarding hence the management of these resources,” he said.
Compliance data from the Centre for Local Governance Advocacy’s PFM league table show an average compliance score rise from 22 percent in 2023 to 56 percent in 2025. Yet, procurement planning, financial reporting, internal audits and follow‑up on audit findings remain persistent weaknesses for almost half of the assemblies.
The World Bank representative added that the assessment would provide evidence to guide reforms and ensure that the extra public spending translates into better services for citizens. “More resources are reaching MMDAs and their systems are improving. We now need good evidence on where the systems hold up and where they do not,” he said.
The last sub‑national PEFA assessment in Ghana was conducted in 2012, making this the first major update in more than a decade. The findings are expected to shape future policy and oversight of local government finances.
