Debt servicing gulps nearly 50% as govt releases K22.9 billion for public service delivery in June

The government, through the treasury, has disbursed K22.9 billion in June 2025 to finance public service delivery, with K11 billion spent on debt servicing and arrears, according to the Ministry of Finance and National Planning.

From the total allocation, K5.1 billion was released for the public service wage bill, K3.7 billion for transfers, subsidies, and social benefits, K1.6 billion for government programmes and operations, and K1.4 million for capital projects.

Finance and National Planning Minister, Situmbeko Musokotwane, said Government’s continued release of funds towards social protection, infrastructure, health, and economic initiatives demonstrates its commitment to economic stability and inclusive growth.

“Transforming the economy requires joint effort. Government will remain steadfast in honouring its obligations, investing in infrastructure, empowering communities through bursaries, grants and loans, supporting farmers, and improving healthcare services,” Musokotwane stated.

He encouraged stakeholders and citizens to actively contribute to national development by embracing initiatives that enhance productivity, innovation, and accountability to create jobs, grow businesses, and unlock the country’s mineral and agricultural potential.

Musokotwane emphasised that the economic management team would continue implementing President Hakainde Hichilema’s directive to work inclusively and steer Zambia towards lasting economic transformation and shared prosperity.

According to the report, K4.7 billion was used for domestic debt service, K5.8 billion for external debt service, and K593.9 million to clear arrears owed to suppliers of goods and services.

The Treasury also disbursed K1.6 billion to support various government operations, including K472.4 million for the procurement of medicines and medical supplies for public health facilities and K124.6 million for a national geological mapping programme to strategically document the country’s mineral and water resources.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.