Libya has approved its first unified state budget in 13 years, signaling a major breakthrough in the country’s long-divided economic governance and a step toward financial stability. The agreement represents the first shared national spending plan since 2013, following years of political division that split Libya into rival administrations in the east and west after the 2014 conflict. The new budget was jointly approved by the country’s competing legislative bodies, reflecting rare cooperation between factions.
Valued at approximately 190 billion Libyan dinars (about $30 billion), the budget outlines spending across key sectors including salaries, infrastructure development, subsidies, and social welfare programs. Officials say it is designed to align government spending with the country’s financial capacity while promoting balanced development across regions.
The Central Bank of Libya described the move as a critical step toward restoring financial stability after years of fragmented public spending and economic uncertainty. The absence of a unified budget had previously contributed to currency pressures and inconsistent fiscal management.
Libya’s economy, heavily dependent on oil revenues, has struggled with instability despite generating billions annually. Analysts say a unified budget could improve transparency, strengthen fiscal discipline, and ensure more equitable distribution of national resources.
Government leaders have also expressed optimism that the agreement could pave the way for broader political reconciliation and economic recovery. By bringing together rival authorities under a single financial framework, Libya is taking a significant step toward rebuilding trust in its institutions.
While challenges remain, the adoption of a unified budget is being widely seen as a milestone in Libya’s economic reform journey, offering hope for improved governance, stronger public services, and a more stable financial future.