2026 budget under strain despite stable start – Chisanga
By Ludia Ngwadzai
ZAMBIA’S implementation of the 2026 National Budget has delivered mixed but broadly stable results in its opening quarter, though mounting fiscal pressures and both political and external headwinds are beginning to test its resilience, economist Kelvin Chisanga has said.
In an interview with Mast Business yesterday, Chisanga said government spending in the first quarter largely tracked planned priorities, with allocations directed mainly at salaries, debt servicing and essential services covering health, education and social support.
He said revenue collection broadly met expectations over the period, though cash-flow constraints and unresolved legacy arrears hampered the smooth rollout of certain projects.
“Pressure started to build in the second quarter. Higher wage costs and adjustments in tax-related inflows have begun to reduce fiscal space.
As a result, the government focused spending on priority areas such as salaries, health services and energy needs, while delaying or slowing some development projects,” he said.
Chisanga said the budget was now in a careful adjustment phase.
He said government was managing limited resources while trying to maintain key services and balance stability with economic growth.
“The main challenges are rising mandatory spending, especially wages and debt servicing and slower growth in some revenue streams. This limits spending on new development projects, “he said.
He said going forward, the success of the budget would depend on stronger revenue collection, strict control of spending and careful prioritisation of key development programmes.
“In summary, the 2026 budget remains stable but is operating under increasing financial pressure that requires discipline and careful management. With Zambia going to the polls and Parliament dissolving in a few days this month. Supplementary Estimates Number One of 2026 is coming to cushion external shocks, anchor economic necessities, and reflect political realities,” Chisanga said.
