By Mubanga Mubanga
The government spent 71 percent of the total budgetary expenditure in the month of June toward debt servicing.
In a statement issued by the Office of the Secretary to the Treasury in the Ministry of Finance yesterday, of the total K49 billion which was released in June, K34.9 billion went towards debt servicing, representing over 71 percent of total expenditure. K1.4 billion which represents 2.85 percent went towards capital expenditure.
“Of the total amount released in June, K5.5 billion was spent on the Public Service Wage Bill and related obligations, K34.9 billion went towards debt service and dismantling of domestic arrears, K4.2 billion was a subvention towards transfers, subsidies and social benefits, K3 billion financed various government programmes and general operations, while K1.4 billion was invested in capital expenditure and infrastructure development,” the Ministry stated. “In line with the Government’s debt management strategy and commitment to restoring and preserving fiscal credibility and sustainability, K34.9 billion was released towards debt service and other liabilities. Of this amount, K7.4 billion was used for domestic debt service, K26 billion financed external debt service obligations – including the full buyback of Bond B at a discounted price of US$1.1 billion, while the balance of K1.5 billion was directed towards the dismantling of domestic arrears.”
The Ministry stated that the treasury released K4.2 billion for transfers, subsidies and social benefits which are aimed at protecting vulnerable citizens.
“Notable expenditure items in this category included K1.5 billion for the Social Cash Transfer Programme, K1.1 billion to support the operations of Grant-Aided Institutions, including public universities, K610 million for implementation of the Constituency Development Fund (CDF) projects, K316.1 million for the Local Government Equalization,” the Ministry stated.
“Fund, K300 million for the Food Security Pack Programme, and K200 million to the Public Service Pension Fund to support pension obligations and improve the welfare of retirees. These releases continue to demonstrate the Government’s commitment to ensuring that economic recovery and growth remain inclusive by protecting vulnerable households, supporting education, empowering communities, and strengthening local service delivery systems across the country.”
And to facilitate the smooth functioning of Ministries, Provinces and Agencies and to facilitate the implementation of strategic programmes, the treasury released K3 billion for general operations.
“Among the notable expenditures were K345 million for settlement of final gratuities for former Members of Parliament, K200 million to the Electoral Commission of Zambia to support preparations for the forthcoming General Elections, and K48 million for payments to Zampost retirees,” the Ministry stated.
“The Treasury also released K40 million to the Lusaka South Multi-Facility Economic Zone (LS-MFEZ) to facilitate the continued development of one of Zambia’s strategic industrial hubs. The funding will contribute to strengthening the Zone’s capacity to attract both local and foreign investment, support the establishment and expansion of manufacturing and value-adding industries, and create employment opportunities for Zambians.”
The Ministry stated that the Treasury also released K209.7 million for ongoing geological mapping activities which are available at identifying areas with critical mineral resources across the country.
“The programme is aimed at facilitating the Government’s strategy to unlock Zambia’s mineral potential, attract exploration and mining investment, expand the financial resource base, and accelerate growth in a sector that remains a key driver of economic transformation, export earnings, and job creation, particularly for young people,” the statement read in part.
“With regard to infrastructure development, the Government released K1.4 billion towards capital expenditure. Of this amount, K838.9 million was allocated to road infrastructure, K200 million to education infrastructure projects, K200 million to water infrastructure development, K100 million towards Mini Hospital infrastructure development, while K79.7 million supported infrastructure projects under various Ministries, Provinces and Agencies.”
Reflecting on the June 2026 Budget Releases, the Secretary to the Treasury, Mr. Felix Nkulukusa, said the government remained committed to balancing fiscal discipline with social responsibility. He further said;
“Every budget release represents more than a financial transaction. It represents support for a family receiving a Social Cash Transfer, a young person accessing a bursary through CDF, a farmer benefiting from the Food Security Pack, a patient receiving healthcare in a public facility, and a community benefiting from improved infrastructure,” said Nkulukusa.
“The June releases demonstrate our determination to preserve fiscal credibility while continuing to invest in people, communities and economic opportunity. Every payment made towards debt obligations strengthens confidence in Zambia’s economic future, while every kwacha invested in social protection, education, health, local development and infrastructure contributes to improving the quality of life for our citizens.”
