A significant discrepancy between approved budget allocations and actual fund releases is crippling essential local government projects across the country, Parliament heard during the debate on the 2026 Budget Estimates for the Ministry of Local Government, Chieftaincy and Religious Affairs.
Commenting the Committee’s report, Ranking Member Hon. Francis Asenso-Boakye revealed that the persistent shortfall in releases—particularly for Capital Expenditure (CapEx) and Development Partner funds—has stalled several ongoing projects, including regional coordinating council (RCC) office complexes, staff bungalows, and spatial planning facilities.
“The gap between what is approved and what is actually released is undermining the Ministry’s ability to deliver on its mandate,” he stated.
The Committee noted that Compensation alone accounts for 65% of the Ministry’s 2026 allocation of GH¢4.79 billion, leaving limited fiscal space for service delivery and infrastructure. Even the reduced allocation for Goods & Services and CapEx is further weakened by delayed or partial releases.
These funding inconsistencies have also affected monitoring activities, logistics support to MMDAs, and human resource strengthening—critical pillars for effective local governance.
Despite acknowledging the Ministry’s achievements in data system upgrades, civil registration improvements, and temporary employment for over 65,000 vulnerable persons, the Committee described the financial gaps as a “major structural challenge” that threatens project continuity and undermines value for money.
Hon. Asenso-Boakye urged the Ministry of Finance to improve release predictability and prioritise critical service areas to avoid stalling national development at the local level.
Parliament is expected to approve the GH¢4.79 billion budget, subject to the Committee’s recommendations for enhanced financing discipline and improved resource flow.
