Libya spending $50bn budget

2014-06-11 20:12

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Tripoli - Libya's government, suffering from dwindling oil revenues, will allow its ministries to begin spending the $50bn budget it submitted to parliament at the start of the year, even though lawmakers have not voted on it.

The move might force the central bank to use more of its reserves as the budget is not backed up by oil revenues which have fallen to $1bn a month, a quarter of what Libya used to make in the past.

Ten months of protests at oil facilities have reduced oil output to around 200 000 barrels a day, down from 1.4 million bpd in July when protests started.

The OPEC producer's parliament has failed to agree on a 2014 budget proposal worth around $50bn, according to lawmakers.

Public finances could worsen in next few weeks after acting oil Minister Omar Shakmak said on Wednesday Libya had started directing crude from its two offshore fields to supply the Zawiya refinery, key to provide the capital with petrol. This will bring exports closer to zero as the two fields had been the last unaffected by protests so far.

The cabinet of caretaker Prime Minister Abdullah al-Thinni said in a statement late on Tuesday that it considered the budget draft, submitted in January, as valid after parliament had exhausted the legal limit of fours months to vote on it.

"The government considers the budget approved," it said.

Mohamed Abdullah, head of parliament's budget committee, signalled support. He told Reuters the General National Congress (GNC) was willing to work with the finance ministry to use the budget without formal vote as long as recommendations from lawmakers were included.

Bloated civil service

Other deputies said parliament, heavily divided, should still vote on the budget.

"In my opinion the budget should be adopted as soon as possible," said Hamed al-Hattah, a lawmaker from the south.

The central bank holds around $110 bn in foreign reserves but only part of the money is cash, the rest held in overseas bonds, deposits or equity stakes.

Libya is in turmoil as the government and parliament struggle to control militias who helped oust Muammar Gaddafi in 2011 but now defy state authority and seize oil ports at will.

Cutting the budget is difficult as more than half of the budget goes on subsidies and salaries for a greatly overstaffed and inefficient public service, a legacy of Gaddafi who put most adults on the payroll to discourage opposition.

The government has been reluctant to cut back as it struggles to impose authority on a country awash with arms.

Read more on:    libya  |  north africa
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
SPONSORED CONTENT
When is a mountain more than just a mountain? 2014-12-18 07:26

When it’s an adventure! A group of Old Mutual employees found out how much is enough courage, endurance and camaraderie to take on Africa's highest peak.

/News
 

This is what South Africans Googled in 2014!

Find out who and what South Africans were most curious about in 2014!

 
 

I love summer.24

This hilarious song is your new holiday anthem
The world's least visited destination is breathtaking!
LOL treadmill fail!
Google’s top searches of 2014

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

2DAYS ONLY – 30% off Appliances

Coffee makers, blenders, fans, juicers and more. T&Cs apply. Shop now!

2 DAYS ONLY – 40% off books

Get 40% off when you buy 2 books. For two days only! T&Cs apply. Buy now!

Up to 50% off on outdoor gear

Save on chairs, blankets, cooler bags, umbrellas and more. Shop now!

Save on Samsung

Cameras, mobile phones, TVs, Tablets and more. While stocks last. Shop now!

Grand Theft Auto 5

Now available on PS4, Xbox One and PC from R649. Buy now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Any chance to explore the distant shores of things yet to be found will fascinate you. The challenge is dealing with the issues...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.