Friday July 10, 2020

Parliament Approves 2019 Formula for Distribution of DACF

Parliament has approved the Formula for the distribution of the DACF for this year.

The approval was in April after the Chairman of the Committee of the Whole, Hon. Ebo Barton Oduro, who is also the first deputy Speaker of Parliament, presented the report of the committee to the House. The name Committee of the Wholeis used when the whole membership of Parliament is constituted into a committee to deliberate on an issue.

This represents 5.0 per cent of the projected total national revenue for the year. This years amount is 19 per cent higher than that of last year.Every year the Administrator of the DACF is required by the 1992 Constitution to prepare a Formula for the approval of Parliament indicating how the Fund should be distributed to the various District Assemblies.

The Formula states the various factors that should be taken into consideration in determining what should be paid to each Assembly. The factors include the availability of health service, education service, water coverage and tarred road coverage in the respective Districts. Other factors considered include the performance of the District in generating its own revenue. This is captured under the responsive factor which rewards MMDAs for improvements in their IGF using a base year as the basis.

All monies accruing to the Fund are distributed to the Districts in accordance with the approved Formula. The actual amount that goes to the Assemblies, however, depends on the actual national tax revenues collected in the year.