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Reflecting on the May 2025 budget expenditure report, Finance and National Planning Minister Dr Situmbeko Musokotwane has acknowledged that the high level of global policy uncertainty continues to pose significant challenges to Zambia’s external environment.
Despite this, Musokotwane reaffirmed government’s commitment to strengthening public financial management, improving fiscal transparency, and enhancing tax administration.
He noted that Zambia’s economy has demonstrated encouraging resilience in the face of prevailing economic shocks, and expressed optimism about prospects for strong growth this year and beyond, buoyed by a recovery in agriculture and improved mining productivity.
“As government, we will continue on the reform path to build resilience, create fiscal space, and attract private sector investment by fostering a conducive business environment,” Dr Musokotwane said. “We are sustaining partnerships in the development of key economic sectors such as energy, mining, agriculture, manufacturing, tourism, and transport and logistics,” he added.
The Minister further stressed the administration’s commitment to structural reforms in the energy sector, governance improvements, and enhanced transparency in public procurement.
He also highlighted ongoing efforts to level the playing field for private sector-led growth and create employment opportunities, particularly for Zambia’s rapidly expanding youth population.
Musokotwane disclosed that government remained vigilant over developments in the power sector and was closely monitoring for any potential disruptions.
He also assured development partners of Zambia’s unwavering resolve to sustain reforms aimed at safeguarding the country’s economic rebound and transformation.
On fiscal sustainability, the Minister acknowledged emerging spending pressures in 2025, driven by debt service obligations and increased demands for social sector spending.
In response, government he said was intensifying efforts to mobilise domestic revenue and protect priority social and infrastructure investments.
“To this end, we have enhanced the tax collection system, particularly regarding the procurement of goods and services for public institutions,” he said.
“This initiative is being undertaken in collaboration with the Zambia Revenue Authority (ZRA). The Integrated Financial Management Information System (IFMIS) has now been interfaced with the ZRA TaxOnline system, making it mandatory for all vendors and suppliers to public institutions to provide valid Taxpayer Identification Numbers (TPINs) to confirm their tax compliance. This measure effectively seals revenue leakages through this channel,” he noted.
Meanwhile, Musokotwane revealed that in May 2025, the Treasury released K15.8 billion to finance public service delivery. Of this, K5.5 billion was channelled towards domestic and external debt service and arrears, while K5.3 billion was allocated to the public service wage bill.
An additional K1.9 billion funded various development programmes and general government operations, K1.8 billion went to transfers, subsidies, and social benefits, while K1.3 billion was disbursed for capital expenditure.
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