Cabinet Sets 2027 Budget Priorities

By Ruth Chayinda

Cabinet has approved the Budget Policy Concept Paper, which will guide the formulation of the 2027-2029 Medium-Term Budget Plan and the 2027 Annual Budget.

The policy is intended to support national development and improve the welfare of Zambians by growing the economy under the Grow Zambia Agenda.

Cabinet has also agreed to focus on priorities that promote growth across various economic sectors, while keeping human capital development at the centre of Government’s agenda.

The decisions were made during the first Cabinet meeting held under President HAKAINDE HICHILEMA’s second term in office.

According to a statement released to ZNBC news by Cabinet Office, Government’s macroeconomic objectives will include promoting higher and resilient economic growth to create jobs, maintaining single-digit inflation and ensuring a stable exchange rate.

Government also intends to maintain international reserves above three months of import cover.

Cabinet says fiscal consolidation will remain a key priority through broadening the tax base, improving tax compliance using digital systems and increasing efficiency in tax administration.

Government will also continue pursuing concessional and climate-related financing to reduce the risk of high debt distress.

Cabinet has further resolved that Government should work towards reducing budget deficits and maintaining debt sustainability through increased domestic revenue mobilisation.

It has also agreed to integrate climate-resilient projects into planning and budgeting processes to ensure fiscal policy supports climate change adaptation, mitigation and environmental sustainability.

Cabinet has called on all Public Service employees and citizens to work towards achieving the objectives of the Grow Zambia Agenda.