CBL’s Latest Data Reveals $9.9 Billion Deficit in Foreign Currency Public Spending in 2023

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In its most recent data release covering the entirety of 2023, the Central Bank of Libya (CBL) highlighted a persistent trend of escalating public spending outpacing revenue growth.

Foreign Exchange Deficit:
According to the CBL’s latest monthly statement, Libya experienced a foreign exchange deficit of US$ 9.9 billion in 2023. The state’s foreign exchange revenues amounted to $25.4 billion, while expenditures totaled $35.3 billion. The CBL cautioned against the depletion of foreign exchange reserves, which increased by US$ 5 billion compared to 2022.

Revenue Matching Spending:
The CBL projected that state revenues for 2023 would reach 125.9 billion dinars, closely matching anticipated spending of 125.7 billion dinars.

National Oil Corporation (NOC) Spending:
The report disclosed that the National Oil Corporation (NOC) expended 17.5 billion dinars in 2023 from the special budget allocated to it.

Persistent Growth in State Sector Salaries:
An alarming trend highlighted by the CBL was the significant rise in state sector salaries, which surged to approximately 65 billion dinars in the 2023 budget. This represents a staggering 38% increase compared to the previous year’s figures.

These figures underscore the ongoing challenge of managing Libya’s fiscal affairs, with expenditures consistently outpacing revenues. The burgeoning deficit and increased spending, particularly in salaries, raise concerns about the sustainability of Libya’s financial position. Addressing these fiscal imbalances will require prudent fiscal management and strategic measures to enhance revenue generation while controlling expenditure growth.