Doha: Libya has approved its first unified state budget in more than 13 years, the Central Bank of Libya said on Saturday.
According to Qatar News Agency, the approval by the House of Representatives and the High Council of State is expected to strengthen financial stability and advance efforts to unify the country's fiscal framework. The Central Bank of Libya expressed optimism about this development and highlighted its significance.
In a statement, the Central Bank welcomed the signing of Annex No. (1) to the Unified Development Agreement, which includes the adoption of general spending schedules for the state. This agreement is seen as progress toward fiscal unification and is expected to improve public spending discipline.
The Central Bank emphasized that the agreement marks the first consensus on unified public spending across Libya in over a decade. It is based on a framework that aligns with the country's actual financial capacity and addresses the requirements of fiscal sustainability.
The move is anticipated to support efforts to enhance exchange rate stability and strengthen the Libyan dinar. By curbing excessive public spending and reducing financial distortions, the agreement is expected to have positive implications for key macroeconomic indicators.