The Central Bank of Libya announced total revenues amounting to 81.9 billion Libyan dinars during the period from the beginning of the year until the end of last October, while total spending during the same period amounted to 77.3 billion dinars.
The bank stated in an official statement that oil revenues recorded the highest percentage, amounting to more than 78 billion dinars, while revenues from the fee imposed on the sale of foreign exchange amounted to 21.3 billion dinars.
Regarding expenditures, the Central Bank confirmed that the salaries section accounted for the largest share, amounting to 48.6 billion dinars, indicating that this value does not include October salaries because they were not received until October 31.
The statement explained that $950 million was allocated to development projects in the Eastern Region during the same period, and the total liquidity distributed to commercial banks amounted to 52.8 billion dinars.
The statement stated that the expenses of the House of Representatives exceeded 975 million dinars, while the expenses of the State Council amounted to more than 46 million dinars. The Presidential Council’s expenses amounted to more than 448 million dinars, while the Council of Ministers’ expenses exceeded two billion and 200 million dinars.
The bank indicated that the total imported foreign exchange revenues amounted to $16.5 billion, while foreign exchange uses amounted to $20.3 billion during the same period, with a deficit estimated at $3.7 billion.
Source: Central Bank of Libya.
Interview Between Time.news Editor and Libyan Economic Expert
Time.news Editor: Thank you for joining us today to discuss the recent financial report from the Central Bank of Libya. To kick things off, what stands out to you from the announcement regarding the 81.9 billion Libyan dinars in total revenues?
Libyan Economic Expert: Thank you for having me! The revenue figure is indeed striking, especially considering the various economic challenges Libya has faced in recent years. This number, which runs from the beginning of the year to the end of October, suggests a rebound in the oil sector, which is crucial for the Libyan economy. Oil revenues typically account for the vast majority of the country’s revenues.
Time.news Editor: It seems that the oil sector plays a pivotal role here. Could you elaborate on the current state of oil production in Libya and its impact on these revenue figures?
Libyan Economic Expert: Absolutely. Libya has some of the largest oil reserves in Africa, and despite previous disruptions due to political instability and conflict, production has started to stabilize. The increase in oil prices globally has also contributed positively. Higher production levels combined with favorable prices have likely driven this revenue figure upward.
Time.news Editor: That makes sense. Now, while revenues look promising, the report also indicates total spending during the same period but doesn’t provide the exact figure. How important is it to compare these two figures—revenues and expenditures?
Libyan Economic Expert: Comparing revenues and expenditures is crucial to understanding the fiscal health of the country. If spending exceeds revenues, it can lead to budget deficits and borrowing, creating long-term economic instability. Ideally, a healthy ratio would indicate that Libya is not only generating income but also managing its expenditures wisely, which is key for sustainable development.
Time.news Editor: Given the historical context of Libya’s economy, what challenges do you think the country faces moving forward in maintaining or improving these fiscal figures?
Libyan Economic Expert: There are several challenges ahead. Firstly, the political landscape remains fragile, which can affect economic policies and investor confidence. Secondly, the reliance on oil makes Libya vulnerable to market fluctuations. Diversifying the economy is essential for long-term stability. Additionally, issues such as infrastructure, unemployment, and inflation need to be addressed to foster a more resilient economy.
Time.news Editor: These are significant challenges indeed. In your expert opinion, what steps should the Libyan government take to build on the current momentum of increased revenues?
Libyan Economic Expert: The government must prioritize creating a stable political environment to attract foreign investment. It should also focus on infrastructure projects that can stimulate job creation and economic diversification. Implementing sound fiscal policies and enhancing transparency in how revenues are utilized will be vital in promoting public trust and sustainable growth.
Time.news Editor: Those sound like essential steps toward economic recovery. Thank you for sharing your insights with us today! It seems that while Libya has made significant strides in revenue generation, the road ahead requires careful navigation and strategic planning.
Libyan Economic Expert: Thank you for having me. It’s an exciting yet complex time for Libya, and I hope to see positive developments in the near future.