By Angela Moonga
Debt repayment and wages consumed over 72 percent of the K16.1 billion August 2026 budget expenditure, according to the Ministry of Finance and National Planning.
In a statement yesterday, Secretary to the Treasury Felix Nkulukusa stated that from the K16.1 billion that was released during the month, K7.6 billion was directed toward debt service and the dismantling of domestic arrears, while K4.1 billion financed the Public Service wage bill and related obligations.
He stated that a
further K1.8 billion supported government programs and general operations, K1.7 billion was released for transfers, subsidies and social benefits, and K896.4 million financed capital expenditure.
Nkulukusa stated that K6.5 billion of the K7.6 billion was allocated to domestic debt service, K253 million to external debt service and K814 million toward the dismantling of domestic arrears.
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The Treasury asserts that timely debt service and the clearance of verified arrears remain important to strengthening fiscal credibility, supporting confidence in the management of public resources, and improving liquidity conditions for businesses and other entities owed money by the Government,” Nkulukusa stated.
He stated that the government released K1.7 billion towards social protection, health and grant-aided institutions, saying among the most notable recipient programmes was the social cash transfer which provides income support to vulnerable households.
K1.8 billion was released
to facilitate implementation of government programs and general operations, which included K249.8 million for the Electoral Commission of Zambia to support the conduct of the 2026 General Elections, K200 million for compensation and awards, and K130 million for the procurement of drugs and medical equipment.
The Government also released K896.4 million for capital expenditure and other ongoing infrastructure programs, directing K598.4 million towards road infrastructure, while K298 million was allocated to finance ongoing infrastructure projects across the country.
”Consistent with the ongoing transformation of the economy, the Government is determined to sustain investment in productive infrastructure as a key pillar of the transition from stabilization to growth. A cardinal factor is improving connectivity and creating the foundations for increased productivity, investment, and economic activity by the private sector,” Nkulukusa stated. “Public Service Wage Bill–A total of K4.1 billion was released for Personal Emoluments and allowances for diplomatic staff serving in Zambia’s missions abroad. The allocation supported the continued payment of salaries and related obligations across the Public Service, enabling Government institutions to maintain the delivery of essential services to citizens. Timely releases to this component over the last five years demonstrate the Government’s commitment to building an effective, efficient and delivery-oriented Public Service while strengthening accountability and ensuring that public resources are managed prudently and applied for the benefit of citizens.”
Nkulukusa stated that at his inauguration, President Hakainde Hichilema outlined the government’s direction to consolidate the gains from economic stabilization and propel Zambia into a stronger phase of growth, investment, economic expansion, and opportunity.
”The August budget releases therefore reflect continued implementation of the 2026 National Budget within a framework that balances fiscal stability with the Government’s broader objective of translating macroeconomic progress into tangible improvements in household welfare, public services and economic opportunity,” stated Nkulukusa. “This approach is consistent with the Government’s medium-term direction under the GROW ZAMBIA agenda, which seeks to build on the economic stabilization platform through expansion, productive investment, employment creation and stronger domestic capacity to finance national development.”
