K21.1 BILLION RELEASED TO SUPPORT FAMILIES, FARMERS, SCHOOLS & DEVELOPMENT ACROSS ZAMBIA
The Ministry of Finance and National Planning released K21.1 billion in July 2026 to sustain public service delivery, strengthen food security, support farmers, protect vulnerable households, finance free education, honour debt obligations, and invest in infrastructure and other national priorities.
The July releases mark the commencement of the second half of the year and build on the implementation of the on-going 2026 Budget during the first six months, when the Treasury released K152.05 billion to finance public services, debt obligations, social and economic programmes, Government operations and capital expenditure
Of the K21.1 billion released in July, K6.3 billion went towards transfers, subsidies and social benefits, K5.9 billion financed the Public Service Wage Bill and related obligations, K4.3 billion went towards domestic and external debt service and the dismantling of domestic arrears, K3.4 billion supported Government programmes and general operations, while K1.2 billion was directed towards capital expenditure.
Supporting Food Security, Families, Farmers and Schools
The largest component of the July releases was K6.3 billion for transfers, subsidies and social benefits, taking cumulative releases under this category to K30.2 billion during the year. Food security received significant support, with K2.7 billion released to the Food Reserve Agency (FRA). Agriculture received an additional K660 million through the Farmer Input Support Programme (FISP), bringing cumulative releases for the programme to K6.4 billion in 2026.
The Treasury also released K564.2 million for the Social Cash Transfer Programme, taking cumulative releases to K2.3 billion. The programme remains an important part of the Government’s social protection framework through which income support to vulnerable households countrywide, is provided.
A further K709.3 million was released to Grant-Aided Institutions, including hospitals and universities, bringing cumulative releases to K9.6 billion. The Ministry of Finance and National Planning released K841.4 million in grants to schools to support the free education agenda, taking cumulative releases during the year to K2.4 billion. These resources help schools meet operational requirements and sustain access to education (see Education {Amendment} Act No. 6 of 2026)
The Treasury further released K507.3 million towards the Public Service Pension Fund for payment of pension dues, taking cumulative releases for the year to K1.3 billion, while K200 million was released for Cash for Work activities, thereby bringing 2026 cumulative releases to K347.5 million. These expenditures demonstrate the Government’s continuing effort to balance fiscal responsibility with interventions that directly support household welfare, food security, agriculture, education and livelihoods, all all regions of the country.
Honouring Debt Obligations and Strengthening Fiscal Credibility
In July, the Treasury released K4.3 billion for debt service and domestic arrears, bringing cumulative releases reported under debt and other liabilities to K61.2 billion during the year. Of the July amount, K3.2 billion was directed towards domestic debt service, K366.6 million towards external debt service and K683.7 million towards dismantling domestic arrears.
The Government’s continued servicing of debt and settlement of arrears remain important to preserving fiscal credibility, strengthening confidence in Zambia’s public finances and progressively reducing unpaid obligations. Between January and June 2026, the Treasury released K56.9 billion towards debt service and arrears, compared with the projected K39.7 billion. The higher outturn was mainly driven by the Eurobond buyback transaction undertaken as part of the Government’s debt-management strategy.
Investing in Roads, Water, Education and Health
The Ministry of Finance and National Planning released K1.2 billion towards capital infrastructure development, in July 2026. Of this amount, K592 million was allocated to road infrastructure, K243.3 million to water infrastructure projects, K188.9 million for rehabilitation of the National Assembly Buildings, K101.3 million for education infrastructure, and K50 million towards the ongoing works related to mini hospitals in various parts of the country.
These investments are aimed at improving road connectivity, expanding access to clean and safe water, strengthening educational and healthcare infrastructure, and maintaining critical public facilities. The releases also demonstrate the Government’s continuing effort to translate fiscal stability into visible infrastructure, improved public services, greater economic activity and better living conditions for citizens
Keeping Public Services Running
The Treasury released K5.9 billion for the Public Service Wage Bill and related obligations in July, taking cumulative releases for the year to K37.4 billion. These resources cover salaries and related obligations, overseas allowances for Zambian diplomats abroad, and support continuity in public administration and frontline service delivery.
K3.4 billion was released for implementation of other developmental programmes and general operations, bringing cumulative releases under this category to K13 billion for the period January to July 2026. Of the July operational funds, K710 million was allocated to the Electoral Commission of Zambia to facilitate preparations for the forthcoming General Elections, bringing cumulative releases for this purpose to K1.7 billion.
From Economic Stability to Opportunity
Reflecting on the July budget releases, Secretary to the Treasury FELIX NKULUKUSA said responsible economic management is increasingly translating into stronger public services, greater economic opportunity and improved support for citizens.
“Budget implementation is about people. Behind these figures are vulnerable families receiving social protection, farmers producing food, children benefiting from free education, retirees receiving support, institutions delivering essential services, and communities benefiting from infrastructure.
“The K2.7 billion released to the Food Reserve Agency, together with K660 million for FISP, demonstrates our continued investment in agriculture and national food security. Similarly, the K841.4 million released to schools brings cumulative grants supporting free education to K2.4 billion this year.
“We are also honouring debt obligations and dismantling arrears. The fiscal credibility Zambia has rebuilt provides a stronger foundation for investment, increased production, job creation and sustainable economic growth. We are very optimistic about the future.
“Having released K152.05 billion or over 60% of the 2026 budget during the first half, our focus in the second half is to sustain disciplined implementation while accelerating the conversion of available resources into stronger services, productive infrastructure, economic opportunities and improved livelihoods for the benefit of our fellow citizens.”
Mr. NKULUKUSA added that the second-half outlook will require continued prudent management of resources, particularly following the suspension of excise duty on petrol and diesel in response to pressures arising from geopolitical developments affecting global petroleum supply and prices.
“We remain confident in our ability to manage these developments while protecting priority programmes. We will continue to prioritise expenditure, maintain fiscal discipline and direct available resources towards interventions that strengthen resilience, stimulate economic activity and improve citizens’ lives,” he stated, strongly affirming that the Government remains committed to prudent financial management, transparency, and accountability, while ensuring that implementing Ministries, Provinces and Agencies, translate Treasury releases into tangible results across the economy, particularly within beneficiary communities.
Issued by:
Office of the Secretary to the Treasury