Zambia releases K14.6 billion for debt and public services

The Zambian government released K14.6 billion in September 2026 to support public service delivery, debt obligations, and social protection programs. Finance and National Planning Minister Situmbeko Musokotwane stated that the funds are part of a strategy to maintain fiscal discipline while preparing for the 2027 national budget.

Of the total released, K5.4 billion was dedicated to debt servicing and clearing domestic arrears. This included K4.1 billion for domestic debt, K625.1 million for external debt, and K674.2 million to settle outstanding domestic arrears, some of which dated back over five years. The government also allocated K5.4 billion toward the public service wage bill.

Social welfare and development programs received significant funding, including K1.8 billion for transfers, subsidies, and social benefits. Specific allocations included K857 million for grant-aided institutions such as hospitals and universities, K435.8 million for the Social Cash Transfer Programme, and K200 million for the Food Security Pack Programme. Additionally, the restoration of fuel excise duty was noted as a measure to ease fiscal pressures and sustain funding for free education and school feeding initiatives.