Professor of Economics at Benghazi University, Dr. Ayoub Al-Farsi, exclusively told our source regarding the signing of the Unified Development Program agreement that it is the fruit of the Central Bank’s (CBL) efforts to mediate a common formula for the 2026 budget. These efforts began from the first days the new administration took leadership of the CBL, but negotiations between the committees involved in the unified budget dialogue stalled last year.
Al-Farsi added: Sensing the danger of continuing without a unified budget for the coming year, the CBL’s efforts began to urge the parties to reach a consensus to protect the national economy from undesirable scenarios, such as the increasing pace of spending without a budget and the possibility of declining oil prices.
He continued: Ultimately, these efforts, along with the cooperation of the House of Representatives and the High Council of State, resulted in an agreement on the development item, which represents the biggest challenge amidst the political and institutional division. The agreement is designed to direct expenditures toward productive development projects that enhance growth within a framework of transparency and governance for this most critical file in the budget.
He added: If this agreement is adhered to, which is expected, it will achieve a series of gains that will positively reflect on the economic situation and the citizen’s livelihood by controlling expenditure through consensus on the remaining budget items, which do not pose as much disagreement, such as the salaries item. All of this will reflect positively on the national economy in the form of exchange rate stability and avoiding the need for currency devaluation.
He concluded by saying: This agreement also represents a protection for foreign currency reserves from the potential drain that would have occurred if the budget were undisciplined according to available revenues.
