GOVERNMENT WARNS OF POSSIBLE BILL PAYMENT FAILURE BY MARCH 2026

Article by: GILBERT MANENYE

The Ministry of Finance has warned that government may fail to pay its bills by March 2026 as cash reserves run dangerously low.

In the draft 2026/27 Budget Strategy Paper, the ministry says the Government Investment Account has been heavily depleted due to weak revenue collection.

By December 2024, the account had dropped to just P251 million, down from P8.6 billion a year earlier.

Although balances slightly improved in 2025, the ministry warns that ongoing budget deficits could fully drain the account by the end of March 2026, raising the risk of delayed payments and mounting arrears.