By Libya Herald reporter.
Tunis, 2 May 2014:
The Audit Bureau has sounded the alarm bells warning of dangerous indicators, economic disasters, an . . .[restrict]economy devoid of life, wasting money on consumer goods, with no work or productivity and cautioned that all financial indicators are negative.
The warning came in its 2014 annual report released on Thursday.
‘’As a result of the assessment of the financial performance of the state during 2013-2014, some dangerous indicators have emerged warning of the occurrence of a financial and economic disaster’’, the report said.
The Audit Bureau acknowledged the division of the country and the military operations, admitting that Libya has become devoid of life without work or production.
‘’In the case of the continuation of this division (of the country) and the continuation of the military operations”, it cautioned, ‘’which have resulted in the country becoming devoid of life, expending money on consumer goods in great amounts without work or production, and in the shadow of a total economic paralyses’’.
On the point ”expending money on consumer goods in great amounts without work or production”, the Audit Bureau was not mixing up foreign currency reserves depleting consumer consumption, with the sustainable development and growth of the Libyan economy.
| Libya’s deficits (billion dinars) | ||
| Year | 2013 | 2014 |
| Financial deficit | 6 | 22 |
| Balance of payments deficit | 8.6 | 28 |
Source Audit Bureau 2014 report
This is partly caused by Libya’s ‘’total dependence on oil as the only source of revenue, a source that is unstable in quantity and price’’, it explained.
The report implied that Libya’s politicians did not understand the danger the country was in financially.
”And in view of the unavailability of the true picture to society or to those responsible in the state of the current (financial and economic) conditions”, it added, ”it has become necessary to warn of the results we have reached through the assessment of the financial state of the country whereby consecutive deficits have appeared and all the financial indicators are negative’’.
The Audit Bureau warned that the deficits will continue to multiply in 2015 if Libya continued to follow the same economic and financial policies in view of the depletion of oil revenues.
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