Paper Title
Sources And Application of Funds in Local Governments

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.