GOVERNMENT says it projects to spend K209.3 billion on debt service payments between 2025 and 2027.

According to the 2025-2027 Medium Term Budget Plan Green Paper, the debt service payments projection includes an allocation for interest on domestic debt and external debt as well as an allocation for the principal repayments.

“Government projects to spend a total of K209.3 billion on Debt Service Payments which includes an allocation for interest on domestic debt and external debt as well as an allocation for the principal repayments. Of the total amount, K54.0 billion or 6.6 percent of GDP is for debt service payments in 2025 whilst K76.3 billion or 8.4 percent of GDP has been allocated in 2026 and K79.0 billion or 7.8 percent of GDP in 2027,” the paper read.

Meanwhile, K40.4 billion will be spent on social benefits over the medium term to facilitate the implementation of social protection programmes.

“Government spending on transfers over the medium-term will amount to K94.9 billion and relates to subventions to Grant Aided Institutions such as the Zambia Revenue Authority, Local Authorities and Public Universities. Of the total amount, K32.5 billion or 4.0 percent of GDP has been allocated for transfers in 2025, K30.2 billion or 3.3 percent of GDP has been allocated in 2026 whilst K32.2 billion or 3.2 percent of GDP has been allocated for transfers in 2027,” read the document.

“Government spending on social benefits over the medium-term amounts to K40.4 billion to facilitate the implementation of social protection programmes such as the Social Cash Transfer, Food Security Pack and Pension Funds. The significant increase in the allocation for social benefits from 2024 levels of K9.6 billion to K14.9 billion in 2025 is to cater for drought response interventions such as the Emergency Cash Response which will run up to June 2025. In 2026, spending on social benefits is projected at K12.2 billion or 1.3 percent of GDP whilst K13.3 billion or 1.3 percent of GDP has been projected for 2027”.