By Angela Moonga
Finance minister Dr Situmbeko Musokotwane says the cost of living in the country remains a concern.
Reflecting on the 2026 national budget themed “Consolidating Economic and Social Gains Towards a Prosperous Resilient and Equitable Zambia” via a press statement issued yesterday, Dr Musokotwane stated that as he spoke about consolidating the progress, he did so with humility and honesty.
”As the Government, we fully recognise that many households continue to face real and persistent challenges,” Musokotwane stated. “The cost of living remains a concern. The lingering effects of climate shocks have contributed to electricity shortages, disrupting domestic life and business operations and constraining economic production. Many micro and small enterprises still face difficulties in accessing affordable financing, while many young people continue to search for stable and meaningful employment.”
He stated that these challenges were not abstract as they were lived realities for some of the citizens, and remained central to government’s.policy choices.
”The 2026 Budget is therefore framed with empathy and urgency. It is deliberately crafted to deliver on leadership commitments aimed at addressing these realities through the continued implementation of key flagship programmes, including free education, enhanced healthcare provision, job creation, economic empowerment for youth and women, prudent public debt management, and a strong stance against corruption,” he stated.
Musokotwane stated that the theme translated into a focus on everyday dignity and practical outcomes: which included affordable food, stable prices, functioning clinics, reliable water supply, decent jobs, and quality education.
”It reflects the Government’s commitment to fairness by ensuring that development reaches rural and peri-urban communities, women, youth, persons with disabilities, and vulnerable groups. It also speaks to resilience—building a Zambia in which shocks such as droughts, global price fluctuations, and supply disruptions do not erase hard-won progress,” he stated.
Musokotwane stated that the theme for the budget spoke to where Zambia had come from, where the country stood today, and the deliberate direction in which the government was moving the country in 2026 and beyond.
”It signals our continued transition from a period of economic turbulence towards stability, resilience, and shared prosperity,” Dr Musokotwane stated
He stated that ass part of the government’s commitment to transparency, inclusion and sustained dialogue, the Ministry of Finance and National Planning will, on January 29, convene a Townhall Meeting bringing together the private sector, public institutions, civil society organisations and everyday citizens.
”The Townhall will provide a structured platform to reflect on major reforms implemented and milestones achieved from 2021, assess specific aspects of budget and overall economic performance in 2025, and engage openly on the 2026 Budget and the economic outlook for 2026,” Musokotwane stated. “The 2026 Budget represents the culmination of a process that began with the presentation of the National Budget Address on Friday, 26th September 2025. That moment marked the start of a rigorous national engagement on public expenditure priorities, revenue mobilisation, and financing measures for the 2026 financial year. It was an engagement that unfolded across institutions, sectors, and communities.”
He stated that the macroeconomic objectives for 2026 include sustained economic growth, inflation returning to the target range of 6–8 percent, a reduced fiscal deficit of 2.1% of GDP, capped net domestic financing, and the maintenance of healthy international reserves of more than four months of import cover.
