Cabinet approves decentralisation policy-Chireh

Page 13, Nov 26, 2010
Story: Emmanuel Adu-Gyamerah
A COMPREHENSIVE Decentralisation Policy with an action plan has been approved by the Cabinet, the Minister of Local Government and Rural Development, Mr Joseph Yieleh Chireh has told Parliament.
Answering questions from the floor of the House, Mr Chireh explained that included an Inter-Governmental Fiscal Framework which had been costed and Inter-Ministerial Fiscal Co-ordination Committee on Fiscal Decentralisation.
The committee, according to the minister, would audit the Metropolitan, Municipal and District Assemblies (MMDAs) to determine their needs to enable the fiscal decentralization to take place.
The Member of Parliament for Agona East, Mr John Agyabeng had asked the minister when the fiscal decrentralisation agenda, which obliged district assemblies to embark on decentralized budgeting within the mediul-term would be operationalised.
He said the fiscal decentralization was more of a national, rather than district level challenge explaining that decentralization involved restructuring of public administration and public financial management arrangements.
Mr Chireh said the government considered the implementation of the district composite budget, improving local revenue generation, improving central government transfer systems and improving financial management of the MMDAS, among others as priorities.
He said it was obvious that these steps were fundamental to the implementation of fiscal decentralization.
Mr Chireh added that with the Fiscal Decentralisation Secretariat in place, the full implementation of the various initiatives, in collaboration with the Ministry of Finance and Economic Planning would be pursued vigorously next year.
Answering another question, Mr Chireh said the government recognized the numerous responsibilities assigned to the district assemblies, especially with the transfer of functions.
He said there were no immediate plans to increase the 7.5 per cent of national revenue which is paid annually into the District Assemblies Common Fund (DACF).
Mr Chireh explained that nevertheless, the ministry was considering other initiatives to ensure that the MMDAs got additional resources to carry out their responsibilities.
He said those initiatives included the development and implementation of the District Development Facility while proposals for the inclusion of Public-Privae Participation (PPP) in the management of some development activities of the MMDAs were being considered.