The Ghanaian government has committed GHS 93 million for consolidated allowances to assembly members across the country. This significant financial commitment aims to strengthen decentralisation and improve grassroots governance. The payment addresses long-standing disparities in financial support for local representatives.
Finance Minister Cassiel Ato Forson announced this initiative during the 2026 Mid-Year Fiscal Policy Review in Parliament last Thursday. This move fulfills a key campaign promise made by President John Dramani Mahama. The consolidated allowance system replaces a previous model that led to unequal payments among assembly members.
This development is crucial for Ghana's decentralisation agenda, which seeks to empower local government structures. The previous system relied on Internally Generated Funds (IGF) from Metropolitan, Municipal, and District Assemblies (MMDAs). This meant assembly members in areas with lower IGFs received less than their counterparts in better-resourced metropolitan assemblies. The new consolidated allowance aims to eliminate this financial discrimination.
Richard Fiadomor, a local governance expert, described the GHS 93 million payment as a major step forward. He stated that the initiative will enhance the effectiveness of assembly members by providing equitable financial support. Fiadomor emphasised that assembly members serve as direct community representatives, playing a critical role in local policy formulation and bye-laws.
Fiadomor noted that the new arrangement allows assembly members to focus on their responsibilities without financial uncertainty. He explained that previously, their ability to perform duties was often hampered by unreliable allowance payments. The expert urged the government to ensure timely release of these allowances to maintain motivation and prevent delays from undermining effective grassroots governance.
The allowances are also expected to improve the oversight role of assembly members. They will be better equipped to monitor government-funded projects in their electoral areas. This enhanced oversight can lead to more efficient project execution and greater accountability at the local level. The payments will also support assembly members in organising town hall meetings to engage residents, gather concerns, and provide feedback on assembly decisions.
This financial injection into local governance is expected to have a positive impact on community development. By ensuring assembly members are adequately supported, the government aims to foster more responsive and effective local administration. This initiative could lead to improved service delivery and greater citizen participation in local decision-making processes across Ghana.
The move aligns with broader efforts to strengthen democratic institutions at the local level. It addresses a critical issue that has long affected the morale and operational capacity of assembly members. The consistent and equitable payment of allowances is seen as essential for sustaining the momentum of decentralisation reforms in Ghana.