Outgoing Deputy Finance Minister Abena Osei-Asare has acknowledged that the government currently owes arrears that are due to be paid into the District Assemblies Common Fund (DACF).
She pledged the government's commitment to resolving the outstanding debt.
Benjamin Kpodo, Ho Central Member of Parliament, raised the issue of non-payment of statutory allocations into the fund, alleging that GH¢6.5 billion was yet to be transmitted.
The MP, also the Deputy Ranking Member of the Local Government Committee of Parliament, highlighted that the Ministry of Finance's delay in releasing funds, in violation of constitutional mandates for quarterly disbursements, has left the Common Fund significantly underfunded.
Speaking in Parliament during discussions on the proposed DACF distribution formula for 2024, Mr Kpodo stressed the urgent need for the government to fulfil its financial obligations to local authorities.
"The Ministry of Finance has been violating the Constitution. Article 252(2) clearly states that the disbursement should be done on a quarterly basis, which they were not doing. As we speak now, the Common Fund is being owed some GH¢3.5 billion over the past two years", Mr Kpodo said.
"For 2023, the debt has again risen by another GH¢3 billion. So, I don't know where the Ministry of Finance is keeping the money meant for the District Assemblies Common Fund," he added.