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‘We have to do more with less,’ Zambian govt sounds the alarm on 2027 budget

Government will have to “do more with less” in the 2027 National Budget as rising personnel costs, increased Constituency Development Fund (CDF) allocations, maize marketing arrears and potential El Niño effects put pressure on public finances, Secretary to the Treasury Felix Nkulukusa has said. Nkulukusa…

‘We have to do more with less,’ Zambian govt sounds the alarm on 2027 budget

Picture: Zambia Monitor

Government will have to “do more with less” in the 2027 National Budget as rising personnel costs, increased Constituency Development Fund (CDF) allocations, maize marketing arrears and potential El Niño effects put pressure on public finances, Secretary to the Treasury Felix Nkulukusa has said.

Nkulukusa said the pressures, coupled with the potential effects of the 2026/2027 El Niño, could pose risks to fiscal sustainability and undermine gains made in restoring macroeconomic stability.

Speaking during the 2027 Budget hearings at the Mulungushi International Conference Centre on Monday, Nkulukusa said Government would need to maintain prudent fiscal management while ensuring that limited public resources translated into improved service delivery, economic opportunities and better living standards.

He said the expansion of constituencies from 156 to 226 had increased allocations, including CDF, while the settlement of maize marketing arrears had created additional demands on the Treasury.

“The central challenge, therefore, is to protect these gains while ensuring that public resources translate into improved service delivery, economic opportunities and better living standards for the people of Zambia,” Nkulukusa said.

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He said the 2027 budget was being formulated at a critical stage of Zambia’s development, as Government sought to consolidate macroeconomic stability and accelerate inclusive economic growth.

The budget is being prepared alongside the Ninth National Development Plan (9NDP), which will guide Zambia’s development priorities over the next five years.

Nkulukusa said the economy was projected to grow by 5.3% in 2026, while growth was expected to average 6.9% between 2027 and 2029.

He added tha Government would also focus on implementing the Grow Zambia Agenda, which seeks to increase production, promote export-led growth, attract investment and create jobs.

However, Nkulukusa said the constrained resource envelope required Government institutions to prioritise programmes with the greatest impact on citizens.

He called for a One-Government approach, stronger coordination and more efficient use of public resources.

Nkulukusa directed institutions participating in the hearings to present clear priority programmes, expected outputs, results and budget requirements while remaining within expenditure ceilings set out in the 2027 Budget Call Circular.

He said the hearings would also help identify implementation bottlenecks and practical measures to address them.

Nkulukusa stressed the need to improve value for money in public spending.

“We must do more with less,” he said, urging institutions to justify every allocation based on its contribution to national priorities and the Grow Zambia Agenda.

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Source: Zambia Monitor — Read more

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