Libya’s Eastern-Based Parliament Approves $18.5 Billion Budget for 2024
Libya’s eastern-based parliament has unanimously approved a budget of 90 billion Libyan dinars ($18.5 billion) for the government led by Osama Hamad. The budget excludes an item for development projects, with parliament members seeking more details before approval.
Osama Hamad, who took office in March 2023 and is aligned with military commander Khalifa Haftar, controls the eastern region and significant parts of southern Libya. In contrast, the Government of National Unity in Tripoli, led by interim Prime Minister Abdulhamid Al-Dbeibah, was established through a UN-backed process in 2021.
Aisha Tublqi, a member of the House of Representatives (HoR), explained that the exclusion of the development projects item was due to the government’s request for 30 billion LYD over three years. However, parliament requires additional project details for approval. It remains uncertain whether Sadiq Kabir, the governor of the Tripoli-based Central Bank of Libya (CBL), will release funds to Hamad’s government.
The CBL serves as the sole internationally recognized repository for Libya’s oil revenues, a crucial source of economic income for the country. Despite approving the budget, HoR member Abdulmenam Alorafi noted that certain considerations were taken into account.
In February, Kabir advocated for a new unified government and national budget, challenging his former ally Dbeibah on government spending. He emphasized the need to end parallel spending from undisclosed sources. Dbeibah, no longer recognized by the HoR, has refused to relinquish power without national elections.
The political process to resolve Libya’s decade-long conflict hit a roadblock when the December 2021 elections collapsed due to disputes over candidate eligibility and election laws. The ongoing power struggle over government control, state revenue, and a political solution poses a threat of administrative division and renewed conflict in Libya.
During a recent briefing to the Security Council, UN special envoy Abdullah Bathily urged Libyan authorities to promptly agree on a national budget and address critical deficiencies. Bathily highlighted the severe economic strain in Libya, citing warnings from the CBL about an impending liquidity crisis.
As the situation in Libya remains precarious, with economic challenges looming large, swift action is needed to prevent further instability. The approval of the budget by the eastern-based parliament marks a step forward, but more transparency and cooperation are essential to steer Libya towards stability and prosperity.