The Economic Affairs Advisor to the Chairman of the Administrative Control Authority, “Ali Al-Sulh,” stated that public debt is supposed to not exceed 60% of GDP, and the deficit should not exceed 3%. However, what has happened in Libya is that public debt has exceeded GDP by more than 60%, while the state continues to finance public spending through deficit financing, which has led to the inflation of public debt.
Al-Sulh added that expenditures financed through public debt have reached approximately 303 billion Libyan dinars. He noted that public debt amounts to 186 billion dinars for the Libyan government and 84 billion dinars for the Government of National Unity, stressing that weak fiscal policy in Libya has been the main reason behind the widening deficit and growing debt.
He further stated that the most important issue for Libyans is the rise in public expenditures and the gap between revenues, exchange rates, and the impact of oil and monetary policy. He also noted that the Authority has cooperated with the Ministries of Economy, Finance, and Planning to establish a national public expenditure database.
Al-Sulh continued: total spending under Chapter One (salaries) from 2011 to 2025 amounted to 525 billion dinars. Chapter Two recorded 77 billion dinars, and Chapter Four reached 188 billion dinars. Chapter Three, dedicated to development and investment, suffers from severe weakness, with operational spending dominating at 85%.
He also said there are no real investments in infrastructure, education, or development, and that the increase in administrative and monetary units has contributed to the rise in public expenditures. Salary expenses have continued to increase due to the instability in the number of employees. Fuel subsidy costs through the Brega Company exceeded 8.4 billion dinars. He added that the imposition of fees on foreign currency sales contributed to supporting public revenues, while personal spending accounted for 82% of foreign currency sales through commercial banks.
