Cabinet has approved the Green Paper on the 2027–2029 Medium-Term Budget Plan, setting out the macro-economic objectives, fiscal policies, strategies and targets that will guide the 2027 National Budget.
The Green Paper was approved during the second Cabinet Meeting of the second term of government, held at State House on Tuesday, September 22, 2026.
Cabinet says the economic outlook for 2027 and the medium term remains positive, with economic growth projected to average six percent.
According to Cabinet, growth is expected to be driven mainly by agriculture, mining, construction, wholesale and retail trade, information and communication technology, as well as financial and insurance services.
However, Cabinet has raised concern that the medium-term outlook could be affected by an El Niño-induced drought during the 2026/2027 agricultural season, which could constrain fiscal space and affect the implementation of government programmes and projects.
Cabinet has consequently resolved to strengthen fiscal buffers and implement measures to mitigate the potential impact.
On revenue, Government will begin implementing the 2027–2031 Medium-Term Revenue Strategy, aimed at increasing sustainable domestic revenue through stronger tax administration, broadening the tax base, rationalising tax incentives and exemptions, rolling out the digital NRC system, and integrating Government systems and public service payments through the Government Service Bus.
Government will also continue mobilising domestic and external resources in line with the Medium-Term Debt Strategy, while prioritising concessional financing and liability management operations to reduce refinancing pressures and manage debt-related risks.
On expenditure, resources will be prioritised towards investments and reforms supporting private sector-led growth, productivity, diversification, value addition and job creation.
Cabinet has further reiterated its resolve to ensure food security in view of the forecast El Niño, which is likely to affect the 2026/2027 farming season.
Citizens and stakeholders have been invited to provide comments and reactions to the Green Paper, which is expected to be issued by the Ministry of Finance and National Planning on September 26, 2026.
By Rachel Mumba
