- 6 Marks
Question
Financial responsibility is a core component of decentralization. If local governments are to carry out decentralized functions effectively, they must have an adequate level of revenues either raised locally or transferred from the central government. In Ghana, one medium for intergovernmental fiscal transfers is the District Assembly Common Fund.
Required:
Explain briefly what the District Assembly Common Fund is and state FOUR (4) functions of the District Assembly Common Fund.
Answer
The District Assemblies Common Fund (DACF) is a Development Fund designed to ensure a more equitable distribution of national resources for development in every part of the country. The Fund is used to support a wide range of projects and programs geared towards improving the lives of people at the local level. Some areas supported include housing, educational infrastructure, quality education primarily at the basic and secondary levels, primary health care, sanitation management, water, sustainable self-help development communities, maintenance of security, and community policing.
(1 mark)
The Functions of the DACF include the following:
- To propose a formula annually for the distribution of the Common Fund for approval by Parliament.
- To administer and distribute monies paid into the Common Fund among the District Assemblies in accordance with the formula approved by Parliament.
- To report in writing to the Minister on how allocations made from the Common Fund to the District Assemblies have been utilized by the District Assemblies.
- To perform any other functions that may be directed by the President.
- Topic: Tax Administration
- Series: NOV 2020
- Uploader: Joseph