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Nearly 48% of Zambia’s K21.4 billion September spending goes into debt servicing, payment of arrears

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Government has released K21.4 billion for September 2025, reinforcing its commitment to fiscal discipline, debt reduction, and public service delivery, Finance and National Planning Minister, Situmbeko Musokotwane has said.

Musokotwane described the monthly disbursements as “the heartbeat of national progress,” adding that the funds ensure salaries are paid, debts cleared, and social programmes supported across the country.

Of the total, K10.2 billion went towards debt service and arrears, including K3.1 billion for domestic debt, K371.3 million for external debt, and K6.7 billion for legacy arrears.

In a statement issued on Sunday, the government said the move was aimed at restoring market confidence and easing the burden on businesses.

K5.2 billion was allocated for public service wages, covering teachers, health personnel, and diplomats abroad.

Read more: Musokotwane says Zambia targeting consistent growth to navigate post-debt restructuring era

Social support and transfers amounted to K3.4 billion, benefiting hospitals, universities, farmers, and vulnerable households. Key allocations included:

K1.2 billion to Grant-Aided Institutions;

K900 million to the Food Reserve Agency for maize purchases;

K656.8 million for the Social Cash Transfer Programme;

K237.3 million for Cash-for-Work initiatives;

K241.9 million to Local Authorities; and

K200 million to the Constituency Development Fund (CDF) for infrastructure, bursaries, and empowerment loans.

Musokotwane urged citizens, local authorities, private sector players, civil society, and development partners to actively participate in monitoring projects and ensuring transparency. “Every kwacha released is a promise fulfilled. Together, we are building a resilient economy and a better Zambia — one project, one community at a time,” he said.

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