By Ellen Hambuba
Government has released K10.9 billion towards debt service and the clearance of domestic arrears, as part of efforts to maintain fiscal stability and protect gains from debt restructuring.
According to the Ministry of Finance and National Planning, K5.9 billion was used for domestic debt service, while K1.5 billion went towards external debt obligations.
An additional K3.5 billion was applied to clearing domestic arrears, a move the government says is crucial for restoring confidence, supporting suppliers, and preventing the accumulation of new liabilities.
Finance and National Planning Minister SITUMBEKO MUSOKOTWANE says consistent and predictable Treasury releases in 2025 demonstrate government’s commitment to budget discipline and responsible economic management.
Dr. MUSOKOTWANE adds that the payments are central to sustaining fiscal credibility as Zambia transitions from economic stabilisation to long-term growth.
Government has also invested K2.2 billion in capital expenditure to finance infrastructure development, signalling a shift from economic stabilisation to productivity and growth.
Of this amount, K1.3 billion was allocated to road infrastructure, K460 million to rural electrification projects, and K397 million to other infrastructure initiatives implemented by various ministries across the country.
Reflecting on the December 2025 budget releases, Dr. MUSOKOTWANE says Zambia is now moving from recovery to sustained growth, investment, and job creation.
He says a comprehensive review of budget execution and reforms from 2021 to 2025 will be presented at a national town hall meeting on January 29, 2026, as the government prepares for the 2026 Budget season.
Meanwhile, Government has released K22.1 billion to fund public service delivery nationwide, demonstrating continued commitment to fiscal discipline and the protection of priority programmes.
A statement from the Ministry of Finance and National Planning says the December 2025 releases were structured to maintain essential services, support vulnerable households, and promote economic activity.
Of the total amount, K4.6 billion went to the Public Service Wage Bill, covering workers in health, education, security services, and diplomatic missions abroad.
A further K2.5 billion was released for transfers, subsidies, and social benefits, including K958.4 million for the Social Cash Transfer programme and K1.3 billion for grant-aided institutions such as hospitals and universities.
This information was contained in a statement sent to ZNBC News by the Office of the Secretary to the Treasury, Ministry of Finance and National Planning.
