Econostrum | Economic News in the Mediterranean

Oil revenues made up 97% of Libyan state revenues in 2021

Written by Eric Apim on Thursday, January 6th 2022 à 17:35 | Read 457 times

The Central Bank of Libya publishes the figures of the Libyan economy for 2021 (photo: CBL)
The Central Bank of Libya publishes the figures of the Libyan economy for 2021 (photo: CBL)
LIBYA. In the midst of political instability in the country, the Central Bank of Libya (CBL) published on Wednesday 5 January 2022, its results for the year 2021. According to this document, Libya's foreign revenues amounted to $22.9bn (€20.27bn) for government expenditures of $24.5bn (€21.69bn). This deficit of $1.6bn (€1.4bn) was covered by the CBL through its reserves.
Oil revenues accounted for 103.4 bn Libyan dinars ($22.39bn - €19.90bn), or 97% of Libyan state revenues.

While the 2021 budget has not been passed by parliament, Libyan law provides that the government can receive, in monthly instalments, the equivalent of the previous year's budget to carry out its work and pay its agents.

Public service salaries reached 33.1 bn Libyan dinars (6.37 bn € or 39% of total expenditure), public subsidies 20.8 bn (4 bn € - 24%) including 3 bn for medicines, 2 bn for marriage allowance and 4.4 bn for children's allowance. The CBL document notes that fuel subsidies still account for the largest share of subsidies, reaching almost 50% of the total paid. "This is a problem that should be addressed, as it leads to unfair distribution and waste of public money," it notes.

27% of spending on development projects

In all, the government spent 17.4 billion dinars (€3.34 billion) on development (20% of spending), 8 billion (€1.54 billion) on recurrent expenditure (9%) and 6.5 billion (€1.25 billion) on its "emergencies" section. The government's foreign currency spending decreased in this fiscal year compared to previous years, although development spending - including some emergency spending on development projects - increased by 27%. Including roads, hospitals, schools and some housing projects, it had not exceeded 4% in previous years.

The CBL says that documentary credits (to secure international transactions through banks) accounted for about 45% of foreign currency liquidity use ($10.7bn) and 85% of emergency spending was on the country's development, or $6bn (€5.3bn). In its analysis, the institution notes that customs revenues are not proportional to the volume of documentary credits opened by banks.

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