Zambia's 2026 Budget: What's Inside the K253.1 Billion Plan
Finance Minister Dr. Situmbeko Musokotwane has presented Zambia's K253.1 billion budget for 2026, packed with significant allocations and policy measures aimed at improving lives across the country.
Constituency Development Fund Gets Major Boost
The biggest headline for local communities is the increase in the Constituency Development Fund (CDF) from K36.1 million to K40 million per constituency in 2026. This represents a substantial increase that will enable more development projects in communities, from building schools and health posts to improving roads and water systems.
What the Numbers Mean
The K253.1 billion budget represents 27% of Zambia's GDP. Most of this money - K206.5 billion or 82% - will come from domestic revenue, showing the country's growing ability to fund itself. The remaining funds will come from grants (K12.1 billion) and borrowing (K34.5 billion).
The government aims for a budget deficit of not more than 2.1% of GDP in 2026, down from 4.6% this year, while targeting economic growth of at least 6.4%. This shows efforts to manage spending responsibly while still investing in development.
More Teachers and Health Workers
Education gets a major boost with plans to recruit 3,500 additional teachers in 2026. The healthcare sector will see 2,500 new health workers recruited, adding to the 2,000 already planned for recruitment by end of 2025.
The budget allocates K1.4 billion to the Higher Education Loans and Scholarship Board to help students access university education.
Healthcare Investment
Healthcare receives significant attention with K6.4 billion set aside for drugs and medical supplies - crucial for ensuring hospitals and clinics have what they need. Another K953 million will go toward maintaining and buying new medical equipment.
Road Construction and Infrastructure
A massive K14.5 billion has been allocated for building and fixing roads, including both urban roads and rural feeder roads that connect farming communities to markets. The budget also includes K1.1 billion to rehabilitate airports across the country.
An important development is the start of work on the Zambia-Tanzania power interconnector next year, which will link Zambia to the regional electricity grid. Additionally, 15 new acrow bridges will be built in 2026, alongside railway upgrades.
Supporting Farmers
Agriculture remains a priority with K9.9 billion allocated to the Farmer Input Support Programme (FISP). The government plans to increase the number of farmers who benefit from this program in 2026. Rural communities will also benefit from K1.4 billion allocated for access to clean and safe water.
Social Protection
The budget shows strong commitment to helping vulnerable families, with K15.7 billion allocated for social protection programs. The government plans to increase households receiving social cash transfers to 1.5 million families.
Power and Energy Incentives
Recognizing the ongoing electricity challenges and the need to attract investment in the electricity sector, the government has introduced significant measures to deal with the problem of lack of power.
The Minister proposed duty relief for machinery and equipment needed for electricity distribution and transmission, making it cheaper to improve the power grid. This addresses what remains as the key challenge - how to transmit electricity from existing generation points to where it is needed.
Additionally, the budget extends the VAT refund period for hydroelectricity generation businesses from 7 years to 10 years. This means businesses in hydroelectricity generation can now claim refunds on VAT incurred on eligible goods for up to ten years before starting commercial operations, providing longer-term tax incentives to encourage investment in the power sector.
Other Key Allocations
The budget includes several other important items:
K92.6 billion for general public services, with K52 billion going to domestic debt servicing and K22 billion for external debt
K226 million for chiefs' affairs to improve traditional leaders' welfare
K75 million to operationalize the Mineral Regulation Commission
A Budget for Transformation
The 2026 budget touches every aspect of Zambian life - from the classroom to the clinic, from the farm to the factory. With increased CDF funding, more teachers and health workers, better roads, stronger support for farmers and vulnerable families, plus new incentives to solve the power crisis, the budget aims to deliver tangible improvements that citizens can see and feel in their daily lives.