Government has presented Supplementary Estimates No. 1 of 2026, amounting to K26.3 billion to Parliament following emerging fiscal pressures since the approval of the 2026 National Budget in December 2025.
Minister of Finance and National Planning, Situmbeko Musokotwane says the additional funding has been necessitated by increased grain purchases during the 2025 marketing season, a higher-than-planned public service wage, and the economic impact of the war in the Middle East.
Presenting the supplementary budget before Parliament, Dr. Musokotwane has explained that government adjusted its fiscal plans after deciding to procure larger quantities of grain during the 2025 marketing season.
He further noted that the conclusion of negotiations with public service unions resulted in a wage increment exceeding initial projections, thereby exerting additional pressure on public expenditure.
Dr. Musokotwane has also informed the House that the ongoing conflict in the Middle East has led the Government to forgo approximately US$200 million over a three-month period, negatively affecting
The Minister has further indicated that the K26.3 billion supplementary budget will be financed through a combination of additional resources anticipated during the year and expenditure realignments within the approved 2026 Budget.
Of the total amount, K2.1 billion is expected from cooperating partners in the form of additional project grants, while K1.4 billion will be generated from unplanned domestic revenues. A further K2.4 billion represents carry-over funds from 2025 resources disbursed but not utilized, which now require Parliamentary approval for regularization in 2026.
Additionally, K10 billion will be realized through expenditure rationalization within the existing 2026 Budget.
Dr. Musokotwane has also reminded Parliament that the Government earlier received US$95 million under the International Monetary Fund (IMF) Extended Credit Facility, which had initially been projected for the fourth quarter of 2025.
He has further disclosed that US$15 million from a US$252 million loan facility from the African Development Bank will be disbursed this year to support the Multi-National Lobito Corridor Project.
An additional K7.5 billion will be sourced through domestic financing via the government securities market in 2026.
By Best Jere
