Cabinet has approved a revised 2026 National Budget to address increased expenditure pressures, driven by rising fuel import costs and an expanded public sector wage bill, government has announced.
Chief Government Spokesperson Cornelius Mweetwa says Cabinet has authorised the revision of the 2026 Budget in order to restore fiscal balance following unanticipated financial challenges.
Mr Mweetwa says the adjustments have become necessary due to increased costs of fuel imports, triggered by ongoing conflicts in the Persian Gulf region, which have had a ripple effect on global oil prices and impacted Zambia’s economy.
He says Government’s recent decision to suspend Value Added Tax and Customs and Excise Duties on fuel, aimed at cushioning citizens from high fuel prices, has also contributed to reduced domestic revenue collection.
According to Mr Mweetwa, the situation has created additional pressure on the national budget, widening the financing gap and necessitating urgent fiscal adjustments.
He has further explained that the revised budget also takes into account a higher-than-projected public sector wage bill, following the conclusion of salary negotiations and improved conditions of service for government workers.
Mr Mweetwa says the budget realignment is intended to ensure continued delivery of public services while maintaining fiscal discipline and supporting key government programmes.
By Best Jere
