Structure of the Economy
This section of the report introduces us to the main economic activities in the district as well as general economic activities and general economic infrastructure. Table 2.5 depicts the occupational structure in the district for 1997.

From the table agriculture is the leading employer of the district’s workforce as expected in a rural economy. This accounts for 62.2% of the labour force compared with 51% of the nation. Next in importance to agriculture is commerce which employs 19.3%, followed by service, 16.1% and industry 3.4%. The district, Fanteakwa has a household size of 5.7 persons with monthly household income of 067,188 and per capita income of ^31,876 which is lower than the national per capita income of
 

¢40,000 with an average household size of 6.1 persons. This is therefore an indication of the low level of living in the district. As the leading employer, agriculture constitutes the main source of income for the people accounting for 62.5%. This is however followed by wages and salaries and remittances which contributes 19.2%, trading contributes 16.8% and industry 0.3%. This is shown on table 2.6.

TABLE 2.6: SOURCES OF HOUSEHOLD INCOME

Source	Percentage
Agriculture	62.5
Wages and Salaries	19.2
Trading	16.8
Industry	0.3
Total	100.0

The average household expenditure was estimated at ^131,268 which is higher than averagemonthly income. The main item of expenditure is food, accounting for 37.9% of the average monthly expenditure. This is followed by education which constitutes 20.2%. This could mean that within the rural economy, economic activities are carried on subsistence level. The high monthly expenditure as against the monthly income indicates a low propensity to save.

Income and Expenditure
The annual average income of the district is 067,188. The major source of income is from cropfarming which accounts for 62.5% of total income. This is followed by trading 16.8%, remittances 12.5% salaries 6.7%, Pension 1.1%, Industry 0.3% and Rent or Lease 0.1%. Table

TABLE 2.11: SOURCE OF INCOME

Source	Percentage
Crop fanning	62.5
Trading	16.8
Remittances	12.5
Salaries/Wages	6.7
Pension	1.1
Industry	0.3
Rent/Lease	0.1
Others

Despite the fact that agriculture is the highest income earner, expenditure on food takes about 39.7% of the total expenditure of the people. This is followed by education 20.2%, health 5.8%, clothing 5.6%, transport 5.6%, farming 5.1%, business 5.0%, energy 3.8%, funerals 3.1%, religion 2.9% etc.

 These are summarised on table 2.12. The income distribution as depicted in Fig. 2.6 shows that income is highly skewed. This is shown by the Gini-Coefficient of 0.5. From the income distribution curve (Lorenz Curve) presented in Fig. 2.6, the following conclusions can be made about the district.

TABLE 2.12: EXPENDITURE PATTERN

Item	Expenditure (%)
Food	39.7
Education	20.2
Health	5.8
Clothing	5.6
Transport	5.6
Business	5.0
Energy	3.8
Funerals	3.1
Religion	2.9
Housing	1.7
Donation	1.1
Water	0.9
Livestock	0.8
Others	0.5
Total	100.0

•  The upper 10% of the people receive 65% of the total income of the district

• The lower 105 of the people receive 4% of the total income of the district

• The lower 50% receive 17% of the total income of the district

 Poverty Level
According to the Vision-2020 (The First Step: 1996-2000), two lines of poverty are identified;

•  The poverty line measuring those who earn % of the national average income per annum.

• The hardcore measuring those who’are below Vs of the national average income per annum

 
According to this definition, those who fall below Vs of the national average income are groups which are most deprived and need special attention. In Fanteakwa District about 34.5% of the people are below the poverty line whilst 9.6% are in the hard core poverty level.

Sources of Income of the District Assembly
Financial ability is very vital in the operations of the District Assembly. As initiator, promoter and implementer of development projects in the district, the ability to perform these functions is highly dependent on the District Assembly’s financial resources. In the exercise of their functions, the District Assemblies have been given the power to mobilise their own funds through, taxation, collection of levies, fines and any other instrument as deemed appropriate to achieve their objectives.

This section of the District Development Plan examines the sources of funds for the Fanteakwa District Assembly. In the process, the major revenue sources are identified, the collection mechanisms and other relevant matters connected with resource mobilisation are discussed.

Table 2,28 to Table 2.38 show a summary of revenues to the assembly for 1993, 1994, 1995 and 1996 with their associated expenditures respectively. The major sources of income for the district are taxes and revenues generated locally and grants- in-aid. For the locally generated sources of revenue, the main sources are rates, court fines, market fees and rent.

INCOME AND EXPENDITURE ANALYSIS -1993

Revenue	Budgeted	Actual	Variance
Rate	9600000	9425328	-174672
Lands	1200000	4754210.1	3554210.1
Fees and Fines	20500000	19279480	1220520
Licences	4099980	4420150	320170
Rents	372000	183500	188500
Grant	22999992	19252455	3747536
Investment Income Interest	560004	160000	40004
Miscellaneous	1000000	1635733	65733
Total Revenue	60331976	59119856	1221119

INCOME AND EXPENDITURE ANALYSIS -1993

Expenditure	Budgeted	Actual	Variance
Personal Emolument	27300000	24510105	2789895
Administration	22694004	15630810	7063194
Maintenance	5965992	.. 475250	5490742
Capital Expenditure	24467988	14274120	10193868
Health	749988	246300	503688
Interest	2499996	1008000	1491996
Education	560004	250000	250004
Miscellaneous	600000	304356	295644
Total Expenditure	84777972	56698941	28079030

Within this category, the major-contribution is from rates. The other source which is external isin grants from central govemmefll and international organisations. These are monies received by the District Assembly for development projects with the coming in force of the 1992 constitution.

Financing of the District Assemblies has changed as a result of constitutional provisions. Five percent (5%) of total revenue of the nation are distributed amongst the 110 District Assemblies. At present the grant-in-aid and the grant from central government (common fund) is the major source of income to the district. Over the years, between 1993 and 1996, the district’s share of the common fund has been ¢23 million, ¢27 million, ¢407 million and ¢438 million respectively.

Summary of Revenue and Expenditure for 1994, 1995 and 1996 The revenue and expenditure are shown on tables 2.33 to 2.38 indicating the estimates and the variations from them for the years above. These are used to show how the District Assembly is performing in terms of revenue mobilisation as well as streamlining the expenditure. Figures 2.23 to 2.25 shows the revenue and expenditure, their surpluses and deficits in graph form for easy analysis.

From the tables and graphs it becomes evident that Fanteakwa District Assembly has not been able to meet its budgeted revenue and expenditure between 1994 and 1996. Also, it is seen that in 1993 an dl994 the District Assembly’s recurrent expenditure was higher than its capital expenditure but this changed in the other way round for 1995 and 1996. It is realised from the sources of revenue analysis that, non of these sources showed a consistence growth