Accra, July 25, GNA - Cabinet has approved a two-and-a-half per cent increase in the District Assemblies Common Fund (DACF) in line with Government's policy to reduce poverty in rural communities.

A statement issued in Accra on Tuesday and signed by Mr Frank Asante, Public Relations Officer at the Ministry of Local Government, Rural Development and Environment, said Parliament ratified the approval on Friday, July 20.

It said Parliament recommended effective monitoring and evaluation as well as the use of the fund to benefit communities in the districts. The statement said Parliament requested the ministry to transfer requisite personnel especially accountants to the assemblies to ensure proper accounting of the fund.

The ministry was in addition, urged to establish a mediating mechanism to reduce the tensions between Members of Parliament and Metropolitan, Municipal and District Chief Executives in the use of the fund.

"This should involve the ministry, Administrator of the Fund and leadership of Parliament," It added.

The statement said Cabinet's approval was based on the need for an efficient and effective decentralisation system, increase in the number of assemblies and efficient sub-structures.

Others were rehabilitation of feeder roads, provision of facilities for the police, judiciary, fire service and other State institutions, School Feeding Programme and Capitation Grant, National Youth Employment Programme and the Disability Act.

Act 455 of 1993 established the fund under which Government through Parliament shall annually allocate not less than five per cent of the total revenue of Ghana to the assemblies for development. The statement said the first release of the fund was disbursed in 1994 and having been in existence for more than 13 years there was the need for the review of the DACF rate.