Debt servicing gulps K5.4bn as Zambia spends K14.6bn in September

Zambia released K5.4 billion towards debt servicing and the clearance of domestic arrears in September 2026, out of total government budget releases of K14.6 billion for the month, Finance and National Planning Minister Situmbeko Musokotwane said on Sunday.

Of the amount, K4.1 billion went towards domestic debt servicing, K625.1 million to external debt servicing and K674.2 million to clearing outstanding domestic arrears.

The minister said the releases were intended to sustain public service delivery, meet debt obligations, protect vulnerable households and finance priority development programmes.

“In line with its commitment to responsible debt management, K5.4 billion was released toward debt service and outstanding domestic obligations,” Musokotwane said.

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He said clearing outstanding liabilities was important for maintaining fiscal credibility, strengthening confidence in public financial management and reducing arrears.

“We are glad that the exercise of clearing domestic arrears, some of which go as far back as over five years ago, has also helped to ease financial pressures on affected suppliers and contractors,” Musokotwane said.

The government also released K5.4 billion for the public service wage bill and related obligations, including personal emoluments and overseas allowances.

Transfers, subsidies and social benefits received K1.8 billion, while K1.5 billion was allocated to government programmes and general operations. Capital expenditure accounted for K526.9 million.

He said the K1.8 billion allocation supported vulnerable households and public institutions, including K857 million for grant-aided institutions such as hospitals and universities, K435.8 million for the Social Cash Transfer Programme, K200 million for the Food Security Pack Programme and K120.8 million for the Local Authorities Equalisation Fund.

“These allocations help ensure that fiscal management continues to address household vulnerabilities while sustaining access to public services,” Musokotwane said.

Of the capital expenditure allocation, K459.9 million went towards road infrastructure, while K67 million was directed to infrastructure projects in various ministries to improve connectivity and facilitate trade.

The government also released K1.5 billion to ministries, provinces and other government agencies to support operations and development programmes.

The allocation included K441.2 million for general operations, K101.1 million for expenditure related to the 2026 general elections and K64.4 million for the ongoing Geological Mapping Exercise.

“The geological mapping exercise is intended to support generation of information on Zambia’s mineral resources and provide a foundation for informed investment decisions and broader mining-sector expansion ambitions,” he said.

Musokotwane said government spending would remain guided by fiscal discipline, sustainable debt management and efforts to strengthen domestic revenue mobilisation.

He added that the restoration of fuel excise duty was intended to ease fiscal pressures and sustain funding for free education, school feeding and the Social Cash Transfer Programme.

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