Zambia Releases K22.1bn in December to Close 2025 Budget

The Government of the Republic of Zambia released K22.1 billion in December 2025 to finance public service delivery, debt obligations, social protection and capital investment, bringing the 2025 Budget implementation cycle to a close.

The releases, made through the Ministry of Finance and National Planning, underline Government’s commitment to fiscal discipline, debt sustainability and economic stability, even as global economic conditions remain uncertain.

According to the Ministry, the December disbursements were structured to sustain essential services, honour debt obligations, dismantle domestic arrears, protect vulnerable households and support growth-enhancing investments. This marks a deliberate transition from recovery towards job creation, productivity and investment-led growth as Zambia advances beyond the IMF-supported Extended Credit Facility (ECF) Programme.

Of the K22.1 billion released:

• K4.6 billion was allocated to the Public Service Wage Bill, ensuring continued delivery of essential services in health, education, security and diplomatic missions;
• K10.9 billion was directed towards debt service and the dismantling of domestic arrears;
• K2.5 billion supported transfers, subsidies and social benefits;
• K1.9 billion financed Government programmes and general operations; and
• K2.2 billion was invested in capital expenditure.

Under the Debt and Other Liabilities category, K5.9 billion went towards domestic debt service, K1.5 billion to external debt obligations, and K3.5 billion to clearing domestic arrears. These measures are aimed at preserving fiscal credibility and preventing the accumulation of unpaid bills.

To cushion vulnerable households and sustain critical institutions, K2.5 billion was released for transfers and subsidies. This included K1.3 billion for Grant-Aided Institutions such as hospitals and universities, K958.4 million for the Social Cash Transfer programme, and K240.7 million for the Local Government Equalisation Fund.

An additional K1.9 billion was provided to ensure uninterrupted operations across public institutions and continued implementation of Government programmes.

Capital spending remained a key priority, with K2.2 billion released for infrastructure development. Of this amount, K1.3 billion was allocated to road infrastructure, K460 million to projects under the Rural Electrification Authority, and K397 million to infrastructure projects implemented by various ministries.

Government says the investment reflects its commitment to translating macroeconomic stability into productive growth, private sector participation and job creation.

Commenting on the December releases, Minister of Finance and National Planning Dr Situmbeko Musokotwane, MP, said Zambia’s reform efforts were delivering predictability and confidence.

“Consistency and predictability of Treasury releases practiced in 2025 are a clear expression of the New Dawn Administration’s commitment to budget discipline, credible reform and responsible economic management,” Dr Musokotwane said.

He added that transparency in budget execution and communication would remain central as Zambia transitions from consolidation to expansion.

“The December budget releases closed the year with a firm signal of continuity, confirming that stability is being preserved while the foundations for growth are being actively laid,” he said.

Dr Musokotwane also announced that a comprehensive performance review of budget execution and reform progress from 2021 to 2025 would be presented during a Townhall Meeting on 29 January 2026.

As Zambia enters the 2026 Budget season, Government has called on citizens, businesses, civil society and cooperating partners to engage constructively in implementation, emphasising that sound economic governance, disciplined execution and shared responsibility remain essential to sustained growth.

Government maintains that predictable budget execution, through timely wage payments, uninterrupted social services, responsible debt management and targeted capital investment, is strengthening investor confidence, improving service delivery and laying the groundwork for inclusive and resilient economic development across the country.