The Ministry of Finance and National Planning says K10.9 billion was channelled to domestic and external debt servicing as well as dismantling domestic arrears out of the K22.1 billion released in December 2025 to support government operations. According to the Ministry’s statement issued on Wednesday, K4.6 billion of the total amount went toward the Public Service Wage Bill, signalling what it described as sustained commitment to fiscal discipline and protection of priority programmes. A further K2.5 billion supported transfers, subsidies and social benefits, while K1.9 billion was directed toward government programmes and general operations.
Capital expenditure accounted for K2.2 billion. The Ministry stated that of the K10.9 billion allocated to debt and other liabilities, K5.9 billion was used for domestic debt servicing, K1.5 billion for external debt obligations, and K3.5 billion for clearing domestic arrears. It said these payments remained central to maintaining fiscal credibility, safeguarding the gains achieved through debt restructuring, and preventing the accumulation of new arrears.
Finance Minister, Dr. Situmbeko Musokotwane, said consistent debt repayments formed a vital pillar of Zambia’s ongoing economic stabilisation efforts. Under the Transfers and Subsidies budget line, K2.5 billion was released to protect vulnerable households and sustain service delivery across critical institutions.
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This included K1.3 billion for Grant-Aided Institutions such as hospitals and universities, K958.4 million for the Social Cash Transfer programme, and K240.7 million for the Local Government Equalisation Fund. In the area of capital expenditure, K2.2 billion was disbursed to support key infrastructure projects. Musokotwane said of this amount, K1.3 billion financed road works, K460 million went to Rural Electrification Authority projects and K397 million supported infrastructure development under various ministries.
“These investments form part of the country’s transition toward a growth-focused framework—one that prioritises productive capital, crowds in private investment, expands opportunity and supports job creation,” Musokotwane said. The wage bill, he said, which totalled K4.6 billion, covered personal emoluments for workers across essential sectors including health, education and security, as well as overseas allowances for diplomatic staff. Musokotwane said that despite global economic turbulence, Zambia was demonstrating progress rooted in stronger economic management and commitment to stability, debt sustainability and growth.
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