Assemblies should self-finance, Common Fund is for development – Ayariga
Minister-designate for Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga, has called on Metropolitan, Municipal and District Assemblies (MMDAs) to strengthen their internally generated funds and become more financially self-reliant to effectively drive development at the local level.
Ghana's Minister designate for Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga, has emphasized that Metropolitan, Municipal and District Assemblies (MMDAs) should prioritize self-financing as a means to drive local development. Speaking before Parliament's Appointments Committee on Thursday, August 27, Ayariga argued that the Ghanaian constitution intends assemblies to generate sufficient revenue for their administrative operations, with central government transfers primarily aimed at supporting development.
He stated that an assembly's capacity to self-finance is one of the criteria for being granted assembly status. Ayariga highlighted several revenue-generating avenues for MMDAs, including property rates, market revenues, and other local charges, suggesting that the potential for property rates has not been fully utilized. He further linked local government financing to Ghana's urbanization trend, stating that growing urban centers hold significant economic potential that can be harnessed to strengthen local economies.
Ayariga, if appointed as Minister, plans to establish an urban structure to identify key elements for effective local development, asserting that improved financing and revenue mobilization would enhance MMDAs' capacity to finance projects and provide essential services without excessive reliance on central government support.
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