Finance minister urges faster implementation of govt programmes as treasury releases K18.4 billion for projects, debt servicing

Finance and National Planning Minister, Situmbeko Musokotwane, has called for improved speed and efficiency in implementing government programmes, particularly under the Constituency Development Fund (CDF), as the Treasury released K18.4 billion in July for developmental projects, debt service, and government operations.

Musokotwane noted that in the early stages of the CDF rollout, less than half of allocated funds were spent, delaying the delivery of essential infrastructure, equipment, and services.

“The government is now more determined than ever to improve execution capacity across all ministries and agencies to ensure timely and impactful delivery to all communities without leaving anyone behind,” he said in a statement issued on Sunday.

He highlighted that over the past three years, Zambia had recorded steady GDP growth, with stronger expansion expected as reforms in mining, agriculture, and other sectors take full effect.

Read more: Musokotwane presents K33.6 billion supplementary budget to address fuel arrears, debt servicing, social support

However, he acknowledged that the benefits of growth had yet to reach all citizens, pledging continued investment in social protection and public services.

Key initiatives include free education, social cash transfers to vulnerable households, and expanded health infrastructure through CDF funding to ensure most communities are within a short distance of a health facility.

Breaking down the July disbursement, Musokotwane said K3.1 billion went towards implementing various government programmes and operations, K2.2 billion to capital expenditure, K3 billion to transfers, subsidies, and social benefits, K4.7 billion to the public service wage bill, and K5.4 billion for arrears and debt service.

In line with the government’s debt reduction strategy, K5 billion was allocated to domestic debt service, K304.3 million to external debt service, and K124.8 million to dismantling arrears.

Capital expenditure included K1.7 billion for ongoing road projects, K330 million for infrastructure under the Ministries of Water Development, Health, and Education, and K94.5 million to the Rural Electrification Authority for ongoing rural electrification programmes.

Musokotwane reaffirmed Zambia’s commitment to maintaining macroeconomic stability, sustaining social spending, restoring fiscal and debt sustainability, and advancing reforms to boost growth, as highlighted in the IMF Country Report published on August 5, 2025.

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