Zambia Releases K22.1 Billion in December to Close 2025 Budget with Focus on Stability and Growth
Zambia Disburses K22.1 Billion in December 2025 to Fund Public Services, Debt Payments and Capital Investment
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, effectively bringing the 2025 Budget implementation cycle to a close.
The releases, executed through the Ministry of Finance and National Planning, underscore the Government’s commitment to fiscal discipline, debt sustainability, and macroeconomic stability, despite continued uncertainty in the global economic environment.
According to the Ministry, the December disbursements were structured to sustain essential public services, honour debt obligations, dismantle domestic arrears, protect vulnerable households, and support growth-enhancing investments.
The allocation reflects a deliberate shift from economic recovery toward job creation, productivity, and investment-led growth, as Zambia progresses beyond the IMF-supported Extended Credit Facility (ECF) Programme.
Breakdown of the December 2025 Releases
Of the total K22.1 billion released:
K4.6 billion was allocated to the Public Service Wage Bill, ensuring uninterrupted delivery of essential services in health, education, security, and diplomatic missions;
K10.9 billion was directed toward debt service and the clearance of domestic arrears;
K2.5 billion supported transfers, subsidies, and social protection programmes;
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 was allocated to domestic debt service, K1.5 billion to external debt obligations, and K3.5 billion to the dismantling of domestic arrears.
Government stated that these measures are critical to preserving fiscal credibility and preventing the accumulation of unpaid bills.
To cushion vulnerable households and sustain key 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 the continued implementation of Government programmes.
Capital expenditure remained a 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 said these investments reflect 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 agenda was 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 fiscal consolidation to economic expansion.
“The December budget releases closed the year with a strong signal of continuity, confirming that stability is being preserved while the foundations for sustained growth are being actively laid,” he noted.
Dr. Musokotwane further announced that a comprehensive performance review of budget execution and reform progress from 2021 to 2025 would be presented at a Townhall Meeting scheduled for January 29, 2026.
As Zambia enters the 2026 Budget cycle, the Government has called on citizens, businesses, civil society, and cooperating partners to engage constructively in budget implementation. Authorities emphasized that sound economic governance, disciplined execution, and shared responsibility remain essential to achieving sustained and inclusive 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 resilient and inclusive economic development across the country.
