A STUDY TOWARDS DEEPENING FISCAL DECENTRALIZATION FOR EFFECTIVE LOCAL SERVICE DELIVERY IN GHANA

The study finds that Ghana's fiscal decentralization is undermined by a heavy reliance on unpredictable central government transfers, fragmented allocation mechanisms, and weak local capacity to mobilize Internally Generated Funds (IGF). It recommends synchronizing fund release cycles with local budget preparation, reviewing laws governing the District Assemblies Common Fund (DACF) and Stool Lands revenue, and investing in revenue management technology and staff training.

• There is no single 'best practice' system of fiscal decentralization in sub-Saharan Africa for wholesale adoption; instead, structures must be designed based on a country's specific context and objectives.
• Intergovernmental transfer mechanisms in Ghana are fragmented and poorly understood by MMDAs. Specifically, deductions from the District Assembly Common Fund (DACF) for various interventions are often made on an ad-hoc basis rather than through a transparent formula, undermining predictability and transparency.
• MMDAs suffer from a lack of budgetary autonomy because central government frequently earmarks funds and makes direct deductions from the DACF for centrally determined priorities, such as the School Feeding Programme and NYEP, often without consulting local assemblies.
• The timing of fund releases is inconsistent and does not align with the MMDA budget cycle, as the DACF formula is often developed during the budget execution phase rather than the preparation phase, which hinders effective local planning.
• Local revenue mobilization is weak due to outdated property databases, a lack of consistent property valuations, and insufficient resources for enforcement. In some districts, such as Ejisu and Upper Manya Krobo, the use of electronic databases for revenue management is particularly weak.
• There is a significant trust gap between MMDAs and local rate payers; citizens are often unwilling to pay taxes because they perceive a lack of visible development and suspect the misappropriation of funds by assembly officials.
• Political interference, particularly during election periods, undermines revenue collection as MMDCEs may avoid enforcing bye-laws or prosecuting tax defaulters to avoid losing votes.
• The disbursement of Stool Lands revenue lacks transparency, as beneficiaries are not informed of the total amounts collected, and the process for allocation between Assemblies and Traditional Authorities is often contested.

APA

Adamtey, R., Obeng, G., & Sarpong, E. T. (2020). A STUDY TOWARDS DEEPENING FISCAL DECENTRALIZATION FOR EFFECTIVE LOCAL SERVICE DELIVERY IN GHANA. Good Governance Africa. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2020/06/FISCAL-DECENTRALIZATION_co.pdf

Chicago

Adamtey, Ronald, Giy Obeng, and Edward Teye Sarpong. A STUDY TOWARDS DEEPENING FISCAL DECENTRALIZATION FOR EFFECTIVE LOCAL SERVICE DELIVERY IN GHANA. Good Governance Africa, 2020. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2020/06/FISCAL-DECENTRALIZATION_co.pdf.

Wikipedia

{{cite report |last1=Adamtey |first1=Ronald |last2=Obeng |first2=Giy |last3=Sarpong |first3=Edward Teye |title=A STUDY TOWARDS DEEPENING FISCAL DECENTRALIZATION FOR EFFECTIVE LOCAL SERVICE DELIVERY IN GHANA |publisher=Good Governance Africa |date=May 2020 |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2020/06/FISCAL-DECENTRALIZATION_co.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{adamtey2020study, author = {Adamtey, Ronald and Obeng, Giy and Sarpong, Edward Teye}, title = {{A STUDY TOWARDS DEEPENING FISCAL DECENTRALIZATION FOR EFFECTIVE LOCAL SERVICE DELIVERY IN GHANA}}, institution = {Good Governance Africa}, year = {2020}, month = may, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2020/06/FISCAL-DECENTRALIZATION_co.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }