GOVERNMENT has injected K22.9 billion into the economy in June, with a significant portion dedicated to debt servicing and public sector salaries, as it continues efforts to stimulate national development.
https://www.facebook.com/share/p/1CXBL3EpCp/?mibextid=oFDknk
According to a statement released by the Ministry of Finance and National Planning, nearly half, 48 percent of the total expenditure, K11 billion, was channeled towards repaying debts and settling outstanding arrears.
Finance Minister Situmbeko Musokotwane’s June expenditure report provided a detailed breakdown, revealing that K5.8 billion was used for external debt repayments, while K4.7 billion addressed domestic debt obligations.
An additional K593.9 million, which is 5 percent of the K11 billion allocation was paid to suppliers of goods and services.
Civil servant salaries accounted for a substantial K5.1 billion of the June outlay, ensuring timely payments for essential personnel including teachers, health workers, and diplomats.
Social protection and community development programmes received K3.7 billion, underscoring the government’s commitment to vulnerable populations.
A significant portion of this, K1.3 billion, was disbursed to the Ministry of Community Development and Social Services for May and June 2025 Social Cash Transfer (SCT) payments.
The Constituency Development Fund (CDF) received K903.4 million, while the Cash for Work Programme saw K333.3 million disbursed to beneficiaries.
Further allocations included K312.6 million to the Public Service Pension Fund (PSPF) for retired government employees and K120.8 million to the Local Government Equalisation Fund (LGEF) to support local council operations.
Meanwhile, Government revealed that capital expenditure, aimed at long-term national benefits through infrastructure and equipment investments, totaled K1.4 million.
Of this, K999.8 million was dedicated to road infrastructure projects, encompassing construction, rehabilitation, and maintenance.
Additionally, K213.6 million was allocated for the initial works of Phase II of the mini-hospital construction project, a move to enhance healthcare services nationwide.
Government also allocated K1.6 billion for various governmental programmes and general operations across public institutions. Within this category was K472.4 million earmarked for the procurement of medicines and medical supplies for public health facilities.
By Sharon Zulu
Kalemba July 10, 2025
