CABINET has approved the Green Paper on the 2027-2029 Medium Term Budget Plan, which sets macro-economic objectives and fiscal policies for the 2027 Budget. The decision was made at the 2nd Cabinet Meeting of the second term of President Hakainde Hichilema's administration held at State House on Tuesday, September 22, 2026, to deliberate on policy

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CABINET has approved the Green Paper on the 2027-2029 Medium Term Budget Plan, which sets macro-economic objectives and fiscal policies for the 2027 Budget.

The decision was made at the 2nd Cabinet Meeting of the second term of President Hakainde Hichilema’s administration held at State House on Tuesday, September 22, 2026, to deliberate on policy matters under the Grow Zambia Agenda, according to a press statement issued by the Secretary to the Cabinet.

Cabinet noted that the economic outlook for 2027 and the medium term remains positive, with growth projected to average six percent, driven by agriculture, mining, construction, wholesale and retail trade, ICT, and financial and insurance services, supported by a strong macroeconomic and fiscal policy framework.

It however raised concern that the outlook is likely to be affected by El Niño-induced drought during the 2026/2027 farming season, which could constrain fiscal space and implementation of programmes.

Cabinet agreed to strengthen fiscal buffers and proactively implement measures to mitigate eventualities that would affect the Growth Agenda, and reiterated government’s resolve to ensure food security in view of the forecasted El Niño.

On revenue, government will commence implementation of the 2027-2031 Medium-Term Revenue Strategy anchored on increased and sustainable domestic revenues. Measures will include strengthening tax administration, broadening the tax base, rationalising incentives and exemptions, rolling out the digital NRC system, and integrating government systems and payments through the Government Service Bus.

On financing, government will continue to mobilise domestic and external resources in line with the Medium-Term Debt Strategy, prioritising concessional financing and undertaking liability management operations to reduce refinancing pressures. Annual Borrowing Plans will be strictly implemented to enhance transparency.

On expenditure, resources will be prioritised towards investments and reforms that support private sector-led growth, productivity, diversification, value addition and job creation, in line with the Grow Zambia Agenda, the 9th National Development Plan and Vision 2030.

Citizens and stakeholders have been urged to provide comments on the Green Paper, which will be issued by the Ministry of Finance and National Planning.

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