By 
Zambia has proposed a record K284.8 billion national budget for 2027, with President Hakainde Hichilema’s second-term administration seeking to shift the country’s economic focus from stabilisation towards job creation, investment and improved livelihoods.
The proposed spending plan, which is the largest in the country’s history, is accompanied by tax measures expected to raise K10.8 billion as government seeks to strengthen domestic revenue mobilisation and support economic growth.
Presenting the 2027 National Budget in Parliament on Friday, Finance and National Planning Minister, Situmbeko Musokotwane, said the budget, themed “Grow Zambia: From Stabilisation to Unlocking Opportunities, Creating Jobs and Improving Livelihoods for All,” was designed to accelerate development while maintaining fiscal discipline.
The proposed expenditure, up from K253.1 billion in 2026, represents 28.4 percent of Gross Domestic Product (GDP).
Musokotwane said government expected to finance 82.1 percent of the budget through domestic revenues projected at K233.7 billion, reflecting efforts to reduce reliance on external financing.
He said domestic revenue mobilisation had steadily improved since the United Party for National Development (UPND) assumed office.
“One of the UPND’s strategic focus since coming into Government has been to strengthen fiscal sustainability through improved domestic resource mobilisation as well as expenditure rationalisation,” he said.
Read more: Musokotwane says 2027 budget to reflect collective Cabinet position
To finance the remaining deficit, government plans to raise K41.9 billion through domestic and external borrowing, representing 14.7 percent of the budget, while K9.2 billion is expected from grants.
The budget also proposes a raft of tax changes, scheduled to take effect on January 1, 2027, aimed at broadening the tax base, encouraging local production and promoting investment.
Among the measures are increased import duties on ceramic tiles, selected aluminium products and processed meat products to protect local industries.
Government has also proposed suspending customs duty and value added tax (VAT) on imported raw materials used in the manufacture of sanitary products.
In the mining sector, the proposed measures include reducing mineral royalty on gold sold by artisanal miners to approved aggregators from six percent to three percent.
However, withholding tax on dividends paid by mining companies is expected to increase from zero to 15 percent, while a five percent export duty will be introduced on zinc concentrates.
Government has further proposed introducing a new 39.5 percent Pay As You Earn (PAYE) tax band for monthly earnings above K37,000.
VAT is also expected to increase from 16 percent to 16.5 percent as government seeks to strengthen domestic revenue collection.
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.
Comments