Government will reduce the Constituency Development Fund (CDF) allocation for the remainder of 2026 to accommodate the higher-than-budgeted expenditure on strategic food reserves.
Minister of Finance and National Planning Dr. Situmbeko Musokotwane says Government had initially planned to purchase 500,000 tonnes of maize but has since accumulated 2.72 million tonnes, significantly increasing expenditure on the Food Reserve Agency (FRA).
Dr. Musokotwane says Government is managing the additional expenditure by constraining spending on other areas, including government operations, travel and other running costs, while also borrowing beyond its initial plans.
He says the additional maize purchases should also be viewed as an investment in food security for 2027, amid forecasts of a potentially severe El Niño weather phenomenon that could affect the next farming season.
Dr. Musokotwane says the current maize stocks are expected to last throughout 2027 and until the next harvest in 2028.
As a result, Government will not finance FRA maize purchases in 2027.
Dr. Musokotwane said this during the IMF and government joint media press briefing in Lusaka on Friday.
By Rachel Mumba
