By Sami Zaptia.
Amman Jordan, 10 May 2014:
The 2014 . . .[restrict]budget, approved by the GNC Committee last week and expected to be approved by the whole GNC Sunday, totalled LD 58.92 bn compared to an LD 66.86 bn budget in 2013 .
Back in March the GNC had revealed it was considering a LD 68.59 bn budget . However, the departure of the Prime Minister who had proposed that budget, Ali Zeidan, and the economic and political reality of Libya’s stunted oil revenues, has meant that the GNC has had to scale down the 2014 budget. Libya has also got a caretaker Prime Minister in situ as it awaits the GNC to choose a new Prime Minister. The process of choosing Ahmed Maetig is likely to be legally contested.
|
LD billions |
2013 budget |
2014 budget |
| Chapter – 1wages |
20.78 |
18.73 |
| Chapter – 2expenses |
10.77 |
9.04 |
| Chapter – 3Development |
19.30 |
14.00 |
| Chapter – 4subsidies |
10.60 |
13.10 |
| Reserves & Contingencies |
5.40 |
4.05 |
|
Total: |
66.86 |
58.92 |
The GNC has had to scale down its 2014 budget due to disrupted oil exports in 2013
The 2014 budget is based on an anticipated revenue of LD 49.26 made up of LD 4.51 non-hydrocarbon revenues, LD 34.70 hydrocarbon revenues, an LD 2.55 bn loan from the Central Bank of Libya (CBL) and LD 7.50 bn carried over from the 2013 budget that the Ali Zeidan government had not spent.
| 2014 budget revenues total LD 49.26 bn | Source |
|
4.51 |
Non-hydro-carbon revenues |
|
34.70 |
Hydrocarbon revenues |
|
2.55 |
CBL loan |
|
7.50 |
Carried forward from 2013 budget |
T
hese revenues leave a deficit of about LD 10 bn, the head of the Finance and Budget Committee confirmed. He did not identify any anticipated cuts in the 2014 budget to make up this anticipated deficit, however, he hoped that this deficit would be made up by either “rationalizations” in spending or by “increased oil revenues”.
In reality, if this deficit is not made up during the year from rationalizations or increased oil revenues, it would most probably be made up through a loan from the CBL, which is sitting on a considerable pool of cash.
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