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The Zambian Government released K7.6 billion in August 2026 towards debt service and the dismantling of domestic arrears, making it the single largest component of the K16.1 billion total budget release for the month.
Of the K7.6 billion, K6.5 billion was allocated to domestic debt service, K253 million to external debt service and K814 million toward clearing verified domestic arrears owed to suppliers and contractors, according to Ministry of Finance and National Planning.
In a statement issued in Lusaka, the August releases form part of the continued implementation of the 2026 National Budget and reflect the Treasury’s priority to strengthen fiscal credibility while maintaining funding for essential services.
Overall, the K16.1 billion was directed to five main areas: debt and arrears, the public service wage bill, government programs, social protection, and capital expenditure.
“The Government will remain committed to ensuring that debt sustainability and prudent management of public resources go hand in hand with protecting essential services, supporting vulnerable households, strengthening productive infrastructure, and creating conditions for private investment and enterprise development to expand,” reads the statement.
President Hakainde Hichilema, speaking at his inauguration, had said that the administration’s direction was to consolidate gains from economic stabilization and propel Zambia into a stronger phase of growth, investment and opportunity.
“Treasury asserts that timely debt service and the clearance of verified arrears remain important to strengthening fiscal credibility, supporting confidence in the management of public resources, and improving liquidity conditions for businesses and other entities owed money by the Government,” the ministry stated.
K4.1 billion was released for the Public Service wage bill and allowances for diplomatic staff abroad, ensuring continued payment of salaries across government institutions.
The ministry ststed that the releases helped sustain core Government functions while providing resources for important health and institutional obligations, referring to K1.8 billion allocated to government programs and general operations.
Within that vote, K249.8 million went to the Electoral Commission of Zambia for the 2026 General Elections, K200 million for compensation and awards, and K130 million for procurement of drugs and medical equipment.
K1.7 billion was channeled to transfers, subsidies and social benefits, including the Social Cash Transfer for vulnerable households and funding to grant-aided institutions such as hospitals.
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“The allocations are also consistent with the Government’s medium-term objective of ensuring that economic stabilization and growth translate into improved living conditions, stronger social protection and greater access to essential public services,” the statement said.
Infrastructure received K896.4 million for capital expenditure. Of this, K598.4 million was directed to road infrastructure and K298 million to other ongoing projects nationwide.
“A cardinal factor is improving connectivity and creating the foundations for increased productivity, investment, and economic activity by the private sector,” the ministry emphasized.
The Treasury said the August releases were consistent with the GROW ZAMBIA agenda, which seeks to build on economic stabilization through productive investment, employment creation and stronger domestic capacity to finance development.
Looking ahead, the ministry said budget execution would remain prudent as Zambia transitions from stabilization to inclusive growth, anchored by the 2027–2031 Medium-Term Revenue Strategy.
It urged businesses, civil society and citizens to participate in consultations to broaden the revenue base without undermining growth.
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