By Cecilia Chiluba/Zambia/Lusaka
Minister of Finance and National Planning, Situmbeko Musokotwane, says the K217.1 billion 2025 national budget registered a solid fiscal performance, with total revenues and grants surpassing government targets.
Dr. Musokotwane told Parliament in a ministerial statement that total revenues and grants to the Treasury reached K187.9 billion, exceeding the target of K185.5 billion, representing a 1.3 percent over-performance.
He reported that domestic revenues rose to K181.6 billion, exceeding the budgeted K160.5 billion and performing 2 percent above target.
Out of this amount, tax revenues were largely on course at K143.6 billion, while non-tax revenues stood at K38.03 billion, surpassing the target by 6 percent.
The Minister attributed the positive budget performance to robust income tax collections and disciplined expenditure control.
“This fiscal discipline has contributed to a generally stable macroeconomic environment,” Dr. Musokotwane said.
However, he revealed that grants amounted to K6.21 billion against the target of K7.5 billion, representing an under-performance of 15.6 percent, largely due to delays in aid disbursement from some cooperating partners.
On the expenditure side, Dr. Musokotwane disclosed that the Government spent K223.7 billion against a projection of K233 billion, representing an under-performance of 4 percent.
Of the total expenditure, K208.2 billion was financed domestically, while K7.4 billion was supported through external financing.
“Notable expenses in 2025 included debt payments at K58.1 billion, which was below the target by 6% due to lower than projected exchange rates which resulted in reduced external debt servicing. Of the total, K40.90 billion was paid toward domestic debt, while K17.22 billion was allocated to external debt,” he explained.
Dr. Musokotwane stressed that the government’s reforms have laid the foundation for stable and sustained growth, safeguarded macroeconomic stability, and supported improved livelihoods.
Meanwhile, the Minister noted that Zambia’s economy demonstrated strong signs of recovery in 2025, with growth projected at 5.2 percent, up from 3.8 percent in 2024.
He said the economic rebound was supported by improved performance in the mining, agriculture, and ICT sectors.
“In the mining sector, a predictable tax regime, issuance of licenses, and dispute resolution encouraged new investments and the reopening of previously idle mines,” the Minister noted.
“In this vein, copper production continued to rise in line with our long-term goal of achieving 3 million metric tonnes by 2031.”
As at end-2025, Zambia’s copper production rose by 7.8 percent to 890,345.79 metric tonnes from 826,000 metric tonnes in 2024.
The surge was driven by increased output by major mining houses which included Konkola Copper Mine, Mopani Copper Mine, Kansanshi and Lubambe mines.
