Libya's parliament approves $46 billion delayed budget

Libya's parliament approves $46 billion delayed budget

Monday, June 23, 2014 12:59 pm

CentralBank_Libya_WikipediaTripoli- Libya’s parliament on Sunday, approved a 2014 budget worth 56 billion Libyan dinars (about 46.5 billion dollars), its spokesman Omar Hmeidan said.

The budget had been delayed due to a wave of protests at oilfields and ports that have dried up oil revenues, which is the budget’s dominant source, but lawmakers were forced to approve the budget after the government put pressure on lby, saying it would start using it after the legal limit for debate had been exhausted.

The western El Feel oilfield ramped up output on Sunday, lifting national production to 270,000 barrels a day following the reopening of Libya’s eastern Hariga oil.

Libya’s Dinar 1.2035 is equal to a dollar. The budget will be largely funded by drawing on surpluses worth 8 billion dinars, a central bank reserve fund of 16 billion dinars – originally intended as a buffer for future generations – plus 26 billion dinars in oil revenue, said Mohamed Abdullah, head of the budget committee.

Oil revenue makes up 95 percent of the budget in the absence of a sizable non-oil industry. Libya has lost $30 billion due to 10 months of protests at oilfields and export terminals but an official said Central sufficient foreign currency reserves to keep the country running for another 3 years.

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