Budget Beats Target

The 2025 national budget has closed above target, with Finance Minister Dr Situmbeko Musokotwane crediting stronger tax collections and tighter spending controls for the better-than-expected performance.

Delivering a ministerial statement on the IMF Extended Credit Facility in the National Assembly, Dr Musokotwane said total revenues and grants reached K187.85 billion — surpassing the target by 1.3 percent. Domestic revenues exceeded projections by 2 percent, while non-tax revenues outperformed by nearly 6 percent.

The stronger revenue performance, combined with expenditure discipline, helped narrow the budget deficit to 3.4 percent of GDP — well below the projected 4.6 percent.

Dr Musokotwane said improved tax administration under the ongoing reform programme has strengthened government's ability to fund key social programmes, including free education, the Constituency Development Fund and the Cash-for-Work initiative.

The country has been implementing a series of fiscal and structural reforms under its IMF Extended Credit Facility programme, central to broader debt restructuring and economic stabilisation efforts.

The figures will be seen as a positive signal ahead of continued engagement with the IMF and international creditors, as the country works to consolidate the gains made since entering the reform programme.