Friday 28 August 2020
Last update on Friday, August 28, 2020 At 9:33 AM
The Central Bank of Libya (BCL) has published budgetary data for the first 7 months of 2020 and the international audit of the two branches of the BCL has been launched.
Over the period from January 1 to July 31, 2020, budget revenues were limited to 3.3 billion LYD according to the BCL against 5.7 billion LYD initially planned, after 3.1 billion LYD at the end of June 2020.
Due to the closure of the oil facilities, oil revenues in the first 7 months of 2020 amounted to only 2.2 billion LYD (2.2 billion LYD at the end of June 2020 also), and represented 66.3% of budget revenues. (compared to 92.6% in 2019).
Other revenue is mainly tax revenue (304 M LYD, or 9.1% of total budget revenue). Revenue from the currency sales tax would amount to LYD 13.5 billion at the end of July 2020, of which LYD 1.2 billion was allocated to finance public investment, and the rest allocated to repay public debt. Over the same period, budgetary expenditure would amount to 19.1 billion LYD (22.5 billion LYD initially planned; after 15.6 billion LYD at the end of June 2020).
The BCL therefore entered a loan of LYD 15.6 billion to cover the budget deficit.
Salaries, the first item of expenditure, would represent 58% of total public expenditure at the end of July 2020. It would then be subsidies (17%), emergency expenditure (“emergency”: 12%), and goods and services. services (10%). Regarding subsidies: 60% are fuel subsidies, 15% for drugs, 11% for electricity, 9% for sanitation and 5% for water.
In addition, the United Nations Support Mission in Libya (UNSMIL) announced on July 27, 2020 the launch of the international audit of the two branches of the BCL, which will be carried out by Deloitte.
As a reminder, the head of the Presidential Council, Fayez Al-Sarraj, in 2018 called on the United Nations to organize an independent audit of the central banks of the West and the East before any reunification of the two branches.
On July 15, 2020, the Libyan prosecution was informed that the payment for the audit was finally made. Finally, BCL Governor Seddik Al-Kabir and GUN Interior Minister Fathi Bashagha signed a cooperation agreement on August 10, 2020 aimed at curbing corruption, money laundering and terrorism operations.
