Govt releases K14.5 billion in February to fund wages, debt service, social programmes

Zambia released K14.5 billion in February 2026 to support public service delivery, finance social protection and agricultural programmes, meet debt obligations and continue infrastructure implementation across the country, the finance ministry has said. Of the total amount, K4.4 billion was allocated to the public service wage bill, K3.7 billion to debt service and arrears dismantling, and K3.8 billion to transfers, subsidies and social benefits. A further K1.9 billion supported the implementation of government programmes and general operations, while K737.1 million was released for capital expenditure.

Finance and National Planning Minister, Dr. Situmbeko Musokotwane, said the releases reflected government’s commitment to budget credibility through orderly financing of priorities under the 2026 National Budget. Musokotwane said the releases also demonstrated efforts to balance immediate service-delivery obligations with longer-term economic management objectives, including debt sustainability, multisectoral investment, job creation and the protection of vulnerable households.

He said the monthly release profile should therefore be viewed within the broader annual budget execution framework. In line with government’s efforts to restore and preserve debt sustainability, K3.7 billion was released toward debt service and other liabilities. Of this, K2.9 billion went toward domestic debt service, K540.1 million to external debt service and K288.2 million to dismantling domestic arrears.

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“These payments should be read as part of Zambia’s wider debt management and restructuring efforts, whose purpose is to strengthen confidence, reduce fiscal pressures over time, and create more room for productive and social spending within a sustainable framework,” he said. The Treasury also released K3.8 billion for transfers, subsidies and social benefits. Key allocations included K2.1 billion for the Farmer Input Support Programme, K1.4 billion for the Social Cash Transfer, and K200 million for the Food Security Pack.

“These allocations underscore a clear policy position, which is that, fiscal consolidation is not being pursued at the expense of social protection or food security,” Musokotwane said. He added that the government was seeking to combine fiscal discipline with targeted support to protect livelihoods and support inclusive growth. Meanwhile, K1.9 billion was released to support the implementation of various government programmes and general operations across institutions.

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