By Angela Moonga
The government has disbursed K5.4 billion to help ease financial pressures on affected suppliers and contractors, some going as far back as over five years ago before the UPND took public office.
In a statement, the Ministry of Finance and National Planning indicated that almost 37 percent of the K14.6 billion expenditure in September 2026, was channelled towards debt service and outstanding domestic obligations.
”Of this amount, K4.1 billion went toward domestic debt service, K625.1 million financed external debt service and K674.2 million supported the clearance of domestic arrears. Meeting these obligations is important for sustaining fiscal credibility, strengthening confidence in public financial management, and reducing outstanding liabilities,” read the statement issued by the Office of the Secretary to the Treasury in part. “We are glad that the exercise of clearing domestic arrears, some of which go as far back as over five years ago, has also helped to ease financial pressures on affected suppliers and contractors.
The Ministry argued that the release reflected the government’s commitment to fiscal discipline, responsible debt management and the protection of essential public expenditure as Zambia consolidates macroeconomic stability and advances toward higher production, investment, employment and inclusive economic growth.
They indicated that the same K5.4 billion amount disbursed towards debt arrears was released to finance the public service wage bill and related obligations. The expenditure on the two undertakings made up 75 percent of the total expenditure for the month of September, and leaving only 25 percent of the allocation to the other pressing national demands
”Of the K14.6 billion released, K5.4 billion financed the Public Service Wage Bill and related obligations, while another K5.4 billion went toward domestic and external debt service and the clearance of domestic arrears. Transfers, subsidies and social benefits received K1.8 billion, Government programmes and general operations were allocated K1.5 billion, and K526.9 million financed capital expenditure,” read the statement in part. “The Treasury’s K1.8 billion allocation for transfers, subsidies and social benefits helped to maintain financial support for vulnerable households, public institutions and local authorities. Notable releases included: 1) K857 million for grant-aided institutions, including hospitals and universities, to support operations and continuity of services; 2) K435.8 million for the Social Cash Transfer Programme, providing financial assistance to vulnerable households; 3) K200 million for the Food Security Pack Programme, supporting food security interventions for vulnerable beneficiaries.4) K120.8 million for the Local Authorities Equalization Fund, strengthening councils’ capacity to deliver essential services.”
The ministry stated that to maintain gove operations and development programmes, K1.5 billion across ministries, provinces and agencies was disbursed; including K441.2 million for general operations, K101.1 million for expenditure related to the 2026 general elections and K64.4 million for the ongoing Geological Mapping Exercise.
”The geological mapping exercise is intended to support the generation of information on Zambia’s mineral resources, provide a foundation for informed investment decisions, mineral exploration and the country’s broader mining-sector expansion ambitions,” read the statement in part. “Capital expenditure received K526.9 million, of which K459.9 million was directed toward road infrastructure and K67 million toward infrastructure projects in various ministries. These investments have the potential to improve connectivity, facilitate trade, reduce transportation constraints and strengthen access to markets and services, particularly in communities where infrastructure gaps continue to limit economic opportunities.”
The government justified their decision to restore excise duty on fuel to help fund free education, school feeding, and Social Cash Transfer, among others.
”Spending commitments will remain anchored in fiscal integrity, disciplined expenditure, sustainable debt management, and stronger domestic revenue mobilization as Zambia moves from economic stabilization to sustained growth. These principles are reinforced by the Presidential Address to Parliament and the IMF–GRZ staff-level agreement,” read the statement. “Ultimately, we expect stronger fiscal discipline to translate into tangible improvements in citizens’ lives through better schools and hospitals, reliable public services, improved infrastructure, stronger social protection, greater employment opportunities, and rising household incomes across Zambia.”
