GOVT ALLOCATES K2.4 BILLION TO DEBT SERVICE IN APRIL TREASURY RELEASES
Dr Situmbeko Musokotwane MP - Finance Minister - Zambia

GOVT ALLOCATES K2.4 BILLION TO DEBT SERVICE IN APRIL TREASURY RELEASES

Government says the Treasury released K17.8 billion in April 2026, with K2.4 billion allocated toward debt service and dismantling of arrears as part of efforts to sustain fiscal stability, restore public financial credibility and support economic recovery.

According to the Ministry of Finance and National Planning, K2 billion of the amount was directed toward domestic debt service, K153 million toward external debt obligations, while K300 million went toward dismantling domestic arrears owed to suppliers and service providers.

The Ministry stated that the payments remain critical in preserving fiscal credibility, supporting private sector liquidity and sustaining gains achieved under Zambia’s debt restructuring programme.

The Treasury releases also included K6.6 billion for the Public Service Wage Bill, K4 billion for transfers, subsidies and social benefits, K3.1 billion for Government programmes and operations, and K1.7 billion for capital expenditure and infrastructure development.

Under transfers, subsidies and social benefits, Government released K1.4 billion for the Social Cash Transfer Programme to support vulnerable households, K1 billion for the Constituency Development Fund (CDF), K700 million to dismantle arrears owed to suppliers under the Farmer Input Support Programme (FISP), K570 million for grant-aided institutions including universities, and K100 million for pension obligations under the Local Authorities Superannuation Fund.
Meanwhile, K3.1 billion was released to facilitate uninterrupted public service delivery and programme implementation across Government institutions, including K1.2 billion for operational requirements across ministries, K350 million for procurement of drugs and medical supplies, and K95 million to support the Electoral Commission of Zambia’s delimitation exercise and settlement of voter registration arrears.

Government also released K1.7 billion toward capital expenditure and infrastructure development. Of this amount, K758.6 million was allocated to road infrastructure projects, K298.3 million to the Rural Electrification Authority, K200 million for water infrastructure projects, K150 million for education infrastructure, K50 million for provincial aerodromes, while K236.4 million supported various infrastructure projects across ministries and public institutions.

Reflecting on the April 2026 Treasury releases, Finance and National Planning Minister Situmbeko Musokotwane said the releases demonstrate Government’s commitment to repositioning public finances toward stability, productivity and long-term economic transformation.

“We have journeyed from the stormy depths of uncharacteristic and carefree borrowing, which by 2020 had weakened fiscal space, strained public finances, and disrupted the Government’s capacity to service debt, and consistently support development programmes and public service delivery,” Dr. Musokotwane said.

“Through over four rigorous years of hard repair work by the New Dawn Administration, Zambians and the international community can now increasingly see the lighthouse shining on the shore of our economy, illuminating a future anchored on consistent disciplined budget execution, private sector-led enterprise, productive expansion, job creation, enhanced competitiveness, sustainable growth, and national prosperity.”
Dr. Musokotwane said the April 2026 Treasury releases demonstrate Government’s continued commitment to ensuring that resources flow toward critical sectors supporting citizens, infrastructure development, economic productivity and social protection.

“Whether through supporting vulnerable households under social programmes, dismantling arrears owed to suppliers, financing roads, electricity, water infrastructure, education facilities, or sustaining operations across Government institutions, these releases reflect our broader commitment to restoring fiscal order while building a stronger foundation for inclusive growth,” he added.

The Minister added that Government remains committed to fiscal discipline, transparency, prudent debt management and responsible public financial management as the country advances from economic stabilization toward stronger growth and increased private sector participation.