Minority Angry Over Government Failure To Honour Statutory Payments

The Minority Chief Whip, Hon. Frank Annoh-Dompreh, has accused the government of collecting taxes while refusing to honour statutory payments, particularly to the District Assemblies Common Fund (DACF).

According to him, the government’s refusal to honour statutory payments will have dire consequences on local economies.
Addressing the media in Accra on Thursday, May 22, 2025, Hon. Annoh-Dompreh condemned the government’s actions as a clear violation of the Local Governance Act (Act 936).

“It is surprising that almost six months have passed, and out of the allocation of GHS7.51 billion, not even a penny has gone to the Assemblies,” he noted.In March 2025, the Minister of Finance, Dr. Casiel Ato Forson, announced a government policy to increase direct funding to the Metropolitan, Municipal, and District Assemblies (MMDAs) by ensuring that 80% of the DACF is disbursed directly to local authorities.

The measure, according to the Finance Minister, was to reduce bureaucratic delays and allow district assemblies to execute develop projects more efficiently.
“To improve project execution and service delivery at the local, the government is ensuring that 80% of the Common Fund is sent directly to MMDAs”, Dr. Forson revealed.

A budget allocation of GHS7.51 was made to the DACF, covering infrastructure development, sanitation and waste management, education and health projects.
However, three months after the budget presentation and six months into the new administration, none of the local assemblies has received any releases from the central government.

The consequences of this delay, according to Hon. Annoh-Dompreh, inhibit development at the local authority level, thereby deepening the woes of the people.
“This means that Persons with Disabilities who have been catered for by some portions of the DACF are going to struggle with their activities. It also means that development will be stagnant, and it is the people who are going to suffer,” he said.

Apart from non-releases of the DACF, Hon. Annoh-Dompreh further revealed that releases to the Ghana Education Trust Fund (GETFund) and the National Health Insurance Authority (NHIA) have not been made. Additionally, the second-quarter releases to Parliament have not been honoured.

Hon. Annoh-Dompreh wondered why the government has refused to honour these statutory payments, despite collecting taxes meant for these allocations.
“Don’t forget that the Growth and Sustainability Levy was increased from 1% to 3%. Even the sunset clause for this levy, the NPP had earmarked to exit at 2025.

The NDC has extended it to 2028. Import Levy has also increased. VAT has also been increased on non-life insurance excluding motor vehicles. You have introduced and collected these taxes, and yet you are flouting the statutory payments that the law mandates that you have to pay,” he fumed.

By Stephen Odoi-Larbi

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