Finance and National Planning Minister Dr Situmbeko Musokotwane has outlined the government’s macroeconomic objectives for 2026, emphasizing the maintenance of healthy international reserves of more than four months of import cover. In a statement issued by the Ministry on Sunday, Dr Musokotwane highlighted that the government will focus on sustaining economic growth, returning inflation to single digits, and reducing the fiscal deficit to 2.1 percent of GDP.
The Minister revealed that the total estimated expenditure for the 2026 Budget is K253.09 billion, representing 27.4 percent of GDP. Financing for the budget will rely primarily on domestic revenue, supported by grants and carefully managed borrowing drawn exclusively from already contracted loans. This strategy reflects the government’s commitment to responsible borrowing and fiscal discipline.
Dr Musokotwane emphasized that these measures aim to strengthen economic stability, enhance investor confidence, and ensure resources are efficiently allocated across sectors critical to development. The approach also seeks to safeguard public finances while promoting inclusive economic growth and maintaining macroeconomic stability.
The government’s focus on maintaining strong reserves, controlling inflation, and reducing the fiscal deficit underscores a broader commitment to long-term economic sustainability and resilience against external shocks.
By prioritizing domestic revenue mobilization and prudent borrowing, Zambia aims to ensure that the 2026 Budget supports growth, protects financial stability, and improves the living standards of citizens.