Libya's Budget Approval: A Step Towards Financial Stability or Further Chaos?

Libya's eastern-based parliament has approved an additional budget of 88 billion Libyan dinars for the current year. This follows an earlier approval of 90 billion dinars for the Benghazi-based government of Osama Hamad. The move raises questions over the distribution of funds, given the split between the eastern and western factions.

Libya's eastern-based parliament has sanctioned an extra budget of 88 billion Libyan dinars ($18.3 billion) for the rest of the year, according to parliament spokesman Abdullah Belhaiq. The decision was made unanimously during a closed session on Wednesday.

Earlier in April, the House of Representatives had approved a 90 billion dinar budget for the Benghazi-based government led by Osama Hamad, who assumed power in March 2023, allying with military commander Khalifa Haftar. The country, divided since the 2011 NATO-backed revolt against Muammar Gaddafi, has seen persistent unrest between its eastern and western factions.

In contrast, Tripoli houses the Government of National Unity under interim Prime Minister Abdulhamid al-Dbeibah, installed through a U.N.-backed procedure in 2021. HoR member Saltana al-Mosmari cited a deficit in the earlier budget, noting its insufficiency. While the Central Bank of Libya, the sole internationally recognized gateway for Libyan oil revenues, remains noncommittal, stakes over a unified national budget are high, as highlighted by U.N. deputy representative Stephanie Koury last month.

(With inputs from agencies.)