K14.6 BILLION RELEASED IN SEPTEMBER TO SUSTAIN PUBLIC SERVICES, PROTECT VULNERABLE HOUSEHOLDS AND SUPPORT NATIONAL DEVELOPMENT
The Ministry of Finance and National Planning released K14.6 billion in September 2026 to sustain public service delivery, meet debt obligations, protect vulnerable households and finance priority development programmes across the country.
The releases reflect the Government’s commitment to fiscal discipline, responsible debt management and the protection of essential public expenditure as Zambia consolidates macroeconomic stability and advances toward higher production, investment, employment and inclusive economic growth
Of the K14.6 billion released, K5.4 billion financed the Public Service Wage Bill and related obligations, while another K5.4 billion went toward domestic and external debt service and the clearance of domestic arrears.
Transfers, subsidies and social benefits received K1.8 billion, Government programmes and general operations were allocated K1.5 billion, and K526.9 million financed capital expenditure.
The Treasury’s K1.8 billion allocation for transfers, subsidies and social benefits helped to maintain financial support for vulnerable households, public institutions and local authorities. Notable releases included:
– K857 million for grant-aided institutions, including hospitals and universities, to support operations and continuity of services;
– K435.8 million for the Social Cash Transfer Programme, providing financial assistance to vulnerable households;
– K200 million for the Food Security Pack Programme, supporting food security interventions for vulnerable beneficiaries; and
– K120.8 million for the Local Authorities Equalization Fund, strengthening councils’ capacity to deliver essential services.
These allocations help ensure that fiscal management continues to address household vulnerabilities while sustaining access to public services.
In line with the Government’s commitment to responsible debt management, K5.4 billion was released toward debt service and outstanding domestic obligations.
Of this amount, K4.1 billion went toward domestic debt service, K625.1 million financed external debt service and K674.2 million supported the clearance of domestic arrears. Meeting these obligations is important for sustaining fiscal credibility, strengthening confidence in public financial management, and reducing outstanding liabilities.
We are glad that the exercise of clearing domestic arrears, some of which go as far back as over five years ago, has also helped to ease financial pressures on affected suppliers and contractors.
To maintain Government operations and advance development programmes, the Treasury released K1.5 billion across Ministries, Provinces and Agencies.
Notable disbursements included K441.2 million for general operations, K101.1 million for expenditure related to the 2026 General Elections and K64.4 million for the ongoing Geological Mapping Exercise.
The geological mapping exercise is intended to support the generation of information on Zambia’s mineral resources, provide a foundation for informed investment decisions, mineral exploration and the country’s broader mining-sector expansion ambitions.
Capital expenditure received K526.9 million, of which K459.9 million was directed toward road infrastructure and K67 million toward infrastructure projects in various ministries.
These investments have the potential to improve connectivity, facilitate trade, reduce transportation constraints and strengthen access to markets and services, particularly in communities where infrastructure gaps continue to limit economic opportunities.
The Treasury further released K5.4 billion for the Public Service Wage Bill, covering personal emoluments and related obligations, including overseas allowances. The allocation supported the continued functioning of public institutions and the delivery of essential Government services.
Conclusion
Sustaining budget credibility requires reliable revenue inflows. The excise duty on fuel has been restored to help ease fiscal pressures arising from the war in the Middle East.
As outlined in the Presidential Address to Parliament, the restoration will help to sustain funding for free education, school feeding, and Social Cash Transfer, among other developmental programmes.
Spending commitments will remain anchored in fiscal integrity, disciplined expenditure, sustainable debt management, and stronger domestic revenue mobilization as Zambia moves from economic stabilization to sustained growth.
These principles are reinforced by the Presidential Address to Parliament and the IMF-GRZ staff-level agreement.
The same principles guided the 2027 National Budget hearings for Ministries, Provinces and Agencies, which concluded on Thursday, 8th October, and the general public submissions on the 2027-2029 Medium Term Budget Plan, and 2027 National Budget, which closed on Friday, 9th October, 2026.
The Government will now progress and analyze the submissions so as to strengthen expenditure prioritization, accountability, and value for money in 2027.
“We thank everyone who participated in the consultations and submitted proposals.
“For the Governments policy direction for next year, please refer to the Presidential Address to Parliament and the Medium-Term Budget Plan, Dr. MUSOKOTWANE has said, adding that, the 2026 Budget remains under implementation.
The detailed revenue and expenditure measures for 2027 will only be announced when the 2027 National Budget is presented to Parliament.”
Ultimately, we expect stronger fiscal discipline to translate into tangible improvements in citizens lives through better schools and hospitals, reliable public services, improved infrastructure, stronger social protection, greater employment opportunities, and rising household incomes across Zambia.