Libya's House of Representatives is gearing up to prepare the country's 2027 budget. The House's Finance Committee, led by Omar Tantoush, has started working on the budget after the House's speaker issued a decision to begin preparations. Tantoush expects the committee to finalize the budget and submit it to the House for discussion and approval in December. The budget preparation process requires accurate data from the Ministry of Finance, the National Oil Corporation, and the Central Bank of Libya.
The preparation of the 2027 budget takes place amid Libya's continued reliance on oil revenues, which poses risks due to fluctuations in global oil prices, production levels, and export volumes. Additionally, the country's high current expenditure and growing government obligations add to the challenges. According to the Central Bank of Libya, the country's general revenues reached approximately 136.87 billion dinars in 2025, while general spending was around 136.8 billion dinars. In the first nine months of 2026, general spending amounted to 88.6 billion dinars.
The country's oil sector plays a significant role in its economy, with oil sales revenues reaching 94.2 billion dinars in the first nine months of 2026. The budget preparation process is further complicated by the ongoing division of executive power in the country, with two governments in place. This division poses a challenge to unifying financial policy and controlling public spending, given the multiple channels of spending and government obligations.
The House of Representatives has made some progress in unifying the country's spending. In April, representatives from the House and the High Council of State signed an agreement on unified public spending at the Central Bank of Libya. The agreement includes adopting general spending tables for the Libyan state, covering several areas. This development marks the first unified spending agreement on a national level in over 13 years.
The Finance Committee's preparations for the 2027 budget involve obtaining accurate data to ensure coordination between concerned institutions and determine financial estimates for the upcoming year. Tantoush emphasized that the committee requires precise data on global oil prices, production volumes, and export revenues. This data will help inform the budget and ensure that it is based on realistic assumptions.
The unified budget for 2027 is expected to include all approved chapters under the law. The House of Representatives' speaker, Aguila Saleh, recently stated that the 2027 budget will be unified, covering all areas. This move is seen as a step towards strengthening financial management and oversight in the country.
The preparation of the 2027 budget is a critical step towards restoring stability and promoting economic growth in Libya. The country's economic challenges, including its reliance on oil revenues and high current expenditure, require careful management and planning. The House of Representatives' efforts to prepare a unified budget are seen as a positive development in this regard.
Key points
- Libya's House of Representatives starts preparing the country's 2027 budget.
Reporting sources
- Wasat TV · Wasat TV
