Government Unveils White Paper for 2025-2027 Medium Term Budget Plan

Government Unveils White Paper for 2025-2027 Medium Term Budget Plan

The Zambian government has released the white paper for the 2025-2027 Medium Term Budget Plan, outlining key economic strategies aimed at fostering resilience and growth across critical sectors. Secretary to the Treasury, Felix Nkulukusa, announced that the white paper highlights measures designed to strengthen the economy, particularly in agriculture, mining, energy, and manufacturing. These strategies align with the objectives of the 8th National Development Plan, which is entering its final two years of implementation.

According to Mr. Nkulukusa, the white paper details the government’s approach to resource mobilization and outlines proposed expenditure priorities. It emphasizes efforts to cushion the economic shocks resulting from the severe drought experienced during the 2023/2024 season, while ensuring that vulnerable populations receive adequate protection.

The document sets a strategic framework aimed at promoting economic resilience and achieving sustained growth, with projections of over 6 percent annual growth. Mr. Nkulukusa stated that fiscal policy will be contractionary, targeting a reduction in the fiscal deficit from 3.1 percent of GDP in 2025 to 0.7 percent by 2027. This reflects the government’s commitment to fiscal discipline and sustainable economic management.

Domestic revenue mobilization is projected to reach at least 21.2 percent of GDP by 2027. This goal will be pursued through enhanced tax policies, leveraging technology to improve tax administration, and boosting tax compliance. Mr. Nkulukusa emphasized that these measures are critical for ensuring fiscal sustainability and supporting the country’s development agenda.

As Zambia moves forward with the implementation of the Medium Term Budget Plan, the government remains committed to fostering an environment that promotes economic stability, job creation, and inclusive growth for all citizens.