2026 Budget: CLGA pushes government to speed up decentralisation reforms

The Centre for Local Governance Advocacy (CLGA) is calling on government to urgently address long-standing gaps in Ghana’s decentralisation system, following a national webinar held on Wednesday to examine decentralisation and local governance provisions in the 2026 Budget Statement.

The virtual forum held on November 27, 2025, brought together public financial management experts, civil society actors, policymakers, and officials from Metropolitan, Municipal, and District Assemblies (MMDAs).

The session featured an extensive analysis by public financial management and governance expert, Dr Eric Oduro Osae, who outlined both opportunities and persistent challenges in the new budget.

Delivering the keynote presentation, Dr Osae expressed concern that despite strong constitutional backing, Ghana’s decentralisation agenda continues to advance at a slow pace due to “political inconsistencies, institutional fragmentation, and inadequate financing.”

He identified several gaps in the 2026 Budget, saying “there are no clear provisions for the election of MMDCEs, despite growing national interest in this key reform.”

CLGA proposes accountability measures to advance Ghana’s decentralisation

Dr Osae also noted the absence of a well-defined framework for implementing the proposed monthly allowances for Assembly Members, as well as inadequate resourcing for Regional Coordinating Councils and decentralised departments.

He further stressed that the slow operationalisation of LI 1961 continues to hinder progress, especially in transferring education and health functions to local authorities. On property rate mobilisation, he observed that “gaps in property valuation capacity continue to undermine MMDAs’ revenue performance.”

While welcoming increased allocations to the District Assemblies Common Fund (DACF), he cautioned that these gains will remain limited “unless releases are timely and backed by strong accountability mechanisms.”

Participants at the webinar raised concerns about the ability of MMDAs to meet revenue targets and their role in major programmes such as rural electrification.

A major recommendation was the expansion of Lands Commission offices across districts to strengthen property valuation and support internally generated funds (IGF).

Stakeholders also warned that the newly established Value-for-Money Offices may duplicate the work of Internal Audit Units, potentially leading to inefficiencies.

Stakeholders called on civil society to intensify advocacy around key reforms, including:

• Fast-tracking the election of MMDCEs

• Publishing the full national cost of decentralisation

• Strengthening local revenue systems, particularly property rate reforms

• Improving resource allocation to RCCs and decentralised departments

• Advancing decentralisation in education, health, sanitation, and other key sectors

• Enhancing transparency in the use of the GH¢8.9 billion DACF

Closing the session, the CLGA reaffirmed its commitment to promoting evidence-based dialogue on decentralisation and local governance. The organisation pledged to continue convening stakeholders and advocating for reforms that enhance accountability, equitable resource distribution, and improved service delivery at the local level.

Stakeholders agreed that the coming months will be critical as government begins implementing the 2026 Budget and finalises the new Decentralisation Policy Framework, which will guide local governance reforms for the next decade.