By Sami Zaptia and Ashraf Abdel-Wahab.
Tripoli, 22 March 2013:
The Libya Herald has been able to obtain details of the 2013 budget . . .[restrict]ahead of general publication.
The 2013 budget totals LD 66.86 billion – about 2.39 percent or LD 1.64 billion less than the 2012 budget which was LD 68.5 billion.
By far the largest single part of the budget is allocated to salaries: LD 20.78 billion or 31 percent. The operational expenses and costs are allocated a total LD 10.77 billion or 16 percent.
Subsidies of food, fuels and electricity are allocated a total of LD 10.6 billion (16 percent) and LD 5.4 billion are set aside as reserve with LD 2.4 billion (3.5 percent) earmarked for the Child Benefit.
Finally, LD 19.3 billion or 28 percent are allocated for the development and reconstruction projects.
|
Section |
Details |
LD billion |
Percentage |
|
| 1 | Section One | Salaries | 20,783,302,000 |
31 |
| 2 | Section Two | Operational expenditure | 10,770,362,000 |
16 |
| 3 | Section Three | Development & Reconstruction Projects | 19,300,000,000 |
28 |
| 4 | Section Four | Subsidies & Price Stabilization Fund | 10,607,850,000 |
16 |
| 5 | The General Reserve including the Child Benefit | 5,400,000,000 |
8 |
|
| 6 | TOTAL | 66,861,514,000 |
Moreover, Libya Herald has learnt that the GNC has put in place nine conditions attached to the Budget:
- That the government activates the new National ID Number.
- The presentation by the government of a comprehensive programme of replacing subsidies on goods with cash subsidies.
- The transfer of allocated money from one section to another to occur only after prior GNC approval.
- The government must payout the Child Benefit
- Compensation was not included in the budget for damage from the 17th February Revolution, to prisoners or damage from the previous regime. The GNC suggested that compensation is dealt with from additional funds and presented to the GNC for approval.
- The budget includes LD 2.4 billion to cover the Child Benefit.
- The GNC has requested that the government present the final accounts for the previous budget by 31/12/2013
- The Central Bank of Libya to provide each of the Ministries of Planning and Finance and the Audit Bureau and the GNC at the end of each month accounts that show the activity of the general budget.
- The activation of the Local Government Act.
The former Al-Kib government was allocated a larger budget of LD 68.5 billion, but in reality the government was only able to spend about half of that budget.
Observers are waiting to see if the Zeidan government is capable of spending most of the 2013 budget and how effective this spending will be in activating the economy and positively affecting the security situation.
Moreover, the section in the budget allocated for the development and reconstruction projects is only LD 19.3 billion or 28 percent, which suggests that if the government has agreed to pay some of the debts of foreign contractors it will be done piecemeal and over a number of years. [/restrict]
