Libya Passes First Unified Budget in 13 Years

Libya’s rival administrations have agreed to unify public spending for the first time in more than 13 years under a US-brokered deal, the central bank announced.

The agreement was signed by Issa Al-Arebi, a representative of the Benghazi-based House of Representatives, and Abdul Jalil Al-Shawish, a representative of the High Council of State in Tripoli.

“This step reflects real progress toward unifying fiscal policy and strengthening the good management of public spending,” the central bank said.

The central bank called the agreement “the first consensus on unified spending across Libya in over 13 years”.

Libya has struggled to recover from the chaos that erupted following the 2011 Arab Spring uprising that toppled longtime ruler Muammar Gaddafi.

The country remains divided between a UN-recognised government led by Prime Minister Abdulhamid Dbeibah, based in Tripoli, and an eastern administration in Benghazi, backed by military leader Khalifa Haftar.

Despite generating $22 billion in oil revenues last year, up more than 15 percent compared to the previous year , Libya faces a foreign currency deficit of $9 billion, according to the central bank.

Libya Passes First Unified Budget in 13 Years. Credit: MEO

In January, the bank devalued the dinar by nearly 15 percent for the second time in less than a year, citing a host of issues including the lack of a unified state budget.

The central bank said the new agreement would bolster financial stability and commended the “positive role of the United States in supporting mediation efforts.”

Libya holds Africa’s largest oil reserves at around 48.4 billion barrels and currently produces about 1.5 million barrels per day while seeking to increase output to two million.

Dbeibah praised Massad Boulos, senior adviser to US President Donald Trump on Arab and African affairs, for “supporting the mediation efforts that led to this agreement”.

“This is a step that carries promising signs, but the true test remains the serious commitment of all parties, so that it translates into tangible results for citizens in their daily lives,” Dbeibah wrote in a statement.

Author

Jimisayo Opanuga

Jimisayo Opanuga is a web writer in the Digital Department at News Central TV, where she covers African and international stories. Her reporting focuses on social issues, health, justice, and the environment, alongside general-interest news. She is passionate about telling stories that inform the public and give voice to underreported communities.