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Finance and National Planning Minister, Situmbeko Musokotwane, has reaffirmed the government’s commitment to maintaining fiscal discipline and honouring debt obligations, as the Treasury released K21.1 billion for public service delivery in October 2025.
A significant portion of the funds — K4.5 billion — went toward debt servicing and arrears, underscoring government’s focus on restoring fiscal credibility and strengthening Zambia’s financial position.
Of this amount, K1.8 billion was used to service domestic debt, K1.2 billion to meet external debt obligations, and K1.5 billion to clear outstanding arrears.
Musokotwane said debt servicing remained central to government’s fiscal management strategy, noting that timely payments are essential for rebuilding confidence among creditors and ensuring sustainable economic growth.
“Fiscal credibility is not just about balancing books — it is about balancing lives. Our commitment to meeting debt obligations reflects our resolve to manage public finances responsibly while safeguarding resources for development and social protection,” he said.
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The Minister explained that despite the pressure debt servicing places on the budget, the government continues to allocate resources for key sectors that stimulate inclusive growth.
In October, K7.2 billion was released for transfers, subsidies, and social benefits; K3.9 billion for government programmes and operations; K1.1 billion for capital expenditure; and K4.3 billion for public service wages and overseas allowances.
Musokotwane stressed that the government’s fiscal strategy seeks to strike a balance between meeting debt commitments and supporting vulnerable but capable citizens through empowerment and social protection initiatives.
“We are deeply concerned about the plight of vulnerable but viable citizens who, with a little support, can become productive contributors to our economy. While we remain committed to debt repayment, we are equally ensuring that funds are available for empowerment, skills development, and entrepreneurship,” he said.
He reiterated that President Hakainde Hichilema’s administration is focused on ensuring that every kwacha in the national budget translates into tangible results for citizens, while maintaining Zambia’s reputation as a reliable borrower and investment destination.
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