Paper Title
Sources and Application of Funds in Local Governments (A Case Study of Kumasi Metropolitan Authority)
Abstract
Decentralization has become an important development strategy global today and development assistance to
promotion of equity as well as participation of government. Ghana has since independence in (1957) gone through a number
of attempts to decentralize political and administrative authority from the national level to the local level .The efforts has
been fragmented and ineffective, especially before 1988.A serious and more effective decentralization in Ghana can
therefore be traced back to 1988 when the number of district assemblies increased from sixty five (65) to one hundred and
ten (110). It is important to recognize that, since 1988, through to 1990s,Ghana , like most developing countries , has put
decentralization policy on its development agenda. The trust of Ghana ‘s decentralization policy has been to promote
popular participation and ownership of local government by shifting the process of governance from command to
consultative processes, and by developing power, competence and resources to the district level (local authorities). Under the
Ghana decentralization policy and local government reform, development is a shared responsibility involving the central
government, local authorities and the communities. The local authorities (district assemblies) are responsible for the overall
development of their respective districts and district assemblies are the highest political and administrative authority at the
district level. Their mandate and authority are captured in the 1992 constitution and a number of enactments such as the local
government act 462, (1993) .The mandate include legislative, administrative, development planning, service delivery as well
as budgeting. The assemblies are responsible for the implementation of government programmes and projects in their areas
of jurisdiction. These include environmental sanitation, education, primary health care, provision of water and infrastructure.
It is therefore important to recognize the role being played by the local authorities. It is significant to note that the
government’s poverty reduction programmes (GPRP) is being implemented through the local authorities under the on-going
decentralization process. It is apparent from the above account that the role of the district assemblies are to carry out
numerous social and development programmes which require an outlay of huge sums of money .The question then is, how
do the district assemblies funds their activities ? This and many other questions are the driving forces of this study.