Libya passes $47bn budget for 2014 after delays

23 June 2014

Libya government spending will use reserves to offset loss of oil export revenues

Libya has passed its overdue budget for 2014 worth LD56.5bn ($47bn) in the lead up to parliamentary elections due to be held on 25 June.

The budget, which was delayed significantly due to political unrest, sees the government drawing on reserves to offset the loss in oil export revenues amid protests at major ports.

The seizure of oil terminals by rebels has caused Libya’s crude output to drop to 200,000 barrels a day (b/d) from a normal production of about 1.5 million b/d. The port seizures have cost the North African country more than $14bn in lost export revenues, according to the Libya government.

The budget will be funded by LD8bn of surpluses, a central bank reserve fund of LD16bn and LD26bn in oil revenue, according to head of the budget committee, Mohamed Abdullah.

The elections on 25 June will be the second vote since former leader Muammar Gaddafi was ousted in 2011.

Libyan citizens will elect members of the new Council of Representatives, which replaces the General National Congress – set up in July 2012 to form a new constitution.

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