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Finance and National Planning Minister, Situmbeko Musokotwane, has presented a K33.6 billion Supplementary Budget to Parliament, as Zambia contends with mounting fuel arrears, external debt servicing obligations, and the need to sustain critical social and agricultural programmes.
Delivering the Supplementary Estimates of Expenditure on Thursday, Musokotwane outlined key proposed allocations designed to address the country’s immediate fiscal and socio-economic priorities.
Out of the proposed K33.6 billion, K11 billion — accounting for 32.9 percent — has been earmarked under Loans and Investments for the dismantling of outstanding fuel arrears.
An additional K105 million has been allocated for disaster risk mitigation through the Africa Risk Capacity insurance programme.
Further, K8.5 billion or 23.5 percent of the supplementary budget will go towards Constitutional and Statutory Expenditure.
Musokotwane explained that Zambia’s debt payment obligations have increased following the conclusion of several external debt restructuring agreements, necessitating interest payments to creditors in the fourth quarter of 2024, which will fall due in 2025.
“Additional payments are also required on domestic debt due to increased borrowing contracted in the fourth quarter of 2024 to finance the budget. Furthermore, K531.7 million is being set aside as a contingency provision for unforeseen and unavoidable expenditure,” he said.
The agriculture sector has been allocated K6 billion, representing 17.7 percent of the supplementary budget. Of this, K5.8 billion will fund the implementation of the 2025/2026 farming season under the Farmer Input Support Programme (FISP), while US$5.6 million has been allocated as counterpart funding for the Zamgrow project, following its extension.
The Ministry of Community Development and Social Services is set to receive K1.9 billion, or 5.6 percent of the total supplementary budget.
Of this amount, K1.6 billion will be directed towards the Regular Social Cash Transfer programme, maintaining the current transfer value of K400 per beneficiary from July to December 2025.
An additional K318 million will be provided through donor support for the Girls’ Education and Women’s Empowerment and Livelihoods for Human Capital Development initiative, funded by the World Bank.
In the education sector, K1.8 billion, representing 5.3 percent of the supplementary budget, has been allocated for infrastructure development.
K1.3 billion of this will fund the continuation of school and university construction and rehabilitation projects, supported by additional donor funding from the World Bank.
A further K285 million (equivalent to US$8.5 million) will be provided through European Union budget support.
The supplementary budget, it is said, reflects government’s effort to balance fiscal consolidation with essential social sector investment amid challenging economic conditions.
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