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Government has released a total of K23.2 billion in January 2026, with the largest allocations directed toward the public service wage bill, debt service, and transfers, subsidies and social benefits.
Of the total disbursement, K4.9 billion was spent on the Public Service Wage Bill, ensuring the continued payment of salaries and allowances for health workers, teachers, security personnel, and diplomats serving abroad.
According to a budget release published on Monday, debt obligations, both domestic and external, accounted for K7.4 billion, while K7.7 billion was allocated to transfers, subsidies and social benefits.
In addition, K1.8 billion was released to facilitate government programmes and general operations, while K1.4 billion was earmarked for capital expenditure, supporting critical infrastructure projects nationwide.
Under transfers, subsidies and social benefits, the Treasury disbursed K7.7 billion to protect vulnerable citizens and sustain key service-delivery institutions.
This included K4.9 billion to the Food Reserve Agency (FRA) to settle obligations to maize farmers from the 2024/2025 marketing season.
Finance and National Planning Minister, Situmbeko Musokotwane, confirmed that government was not in arrears to farmers.
Read more: Local, external debts gulp nearly 50% of treasury releases of K22.1 billion in December
“Any reports of unpaid suppliers are likely due to administrative or banking delays rather than funding shortages,” she said.
Additionally, K147.5 million was released to clear outstanding dues under the Cash for Work Programme, which is set to restart in March/April 2026.
“In January 2026, the Treasury releases reinforced three signals that matter most to citizens and markets: continuity, credibility, and clean execution. Essential services continued uninterrupted, obligations were met in a manner that sustains fiscal credibility, and legacy payment lines were actively cleared to allow key programmes to move forward without carry-over distortions,” Musokotwane said.
He added that the releases sent a clear message to farmers and communities: verified obligations were being settled in an orderly manner, while programmes such as Cash for Work are being reset for predictable and accountable future implementation.
“Taken together, the January 2026 releases demonstrate the practical character of the 2026 Budget: protecting service delivery now, reinforcing fiscal credibility over time, and resetting priority social interventions to deliver results as Zambia advances from stabilisation into a growth-oriented phase,” he said.
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