Government Reveals Medium-Term Budget Plan for 2025-2027

The Ministry of Finance and National Planning has released the White Paper on the Medium-Term Budget Plan for 2025-2027, aiming to enhance transparency and strengthen Zambia’s economic resilience. The document follows the approval of the 2025 National Budget by Parliament and sets out a strategic framework for fiscal and economic policies over the next three years.

Secretary to the Treasury Felix Nkulukusa highlighted that the White Paper comes as Zambia approaches the final phase of the Eighth National Development Plan (8NDP) 2022-2026. He noted that the government is targeting annual economic growth of over 6%, supported by a contractionary fiscal policy aimed at reducing the fiscal deficit from 3.1% of GDP in 2025 to 0.7% by 2027.

Domestic revenue is projected at no less than 21.2% of GDP by 2027, with improvements in tax policy and administration driven by technology. Meanwhile, government expenditure is expected to decline from 26.6% of GDP in 2025 to 24.8% in 2027, achieved through expenditure rationalisation and tackling financial leakages. Social sector spending will remain a priority, and infrastructure projects will increasingly use Public-Private Partnerships.

Additionally, the government acknowledges the increasing impact of climate change and is committed to integrating risk management across public institutions to strengthen resilience and improve service delivery.

The White Paper lays the foundation for a more sustainable and growth-oriented economic trajectory, reinforcing the government’s commitment to fiscal discipline, economic stability, and social development.