On Thursday, Libya’s Minister of Planning and Finance in the Libyan Parliament appointed government, Osama Hammad issued a statement regarding the proposal for the draft general budget for 2022.
“In my capacity as Minister of Planning and Finance in the Libyan government, we presented, discussed, and delivered the proposal for the general budget for the fiscal year 2022. The budget submitted by the National Oil Corporation (NOC) to the cabinet was also discussed. This will be presented to the Libyan Parliament for approval, in the form of a general budget law in implementation of Article No. 12 of the budget, accounts and stores regulations,” Hammad said.
He added that this includes the government’s action plan for the current fiscal year, as this plan includes “specific objectives to be achieved at an estimated financial cost, and the implementation of policies related to raising the efficiency of budget performance, by which public expenditures can be rationalized. As well as increase the productivity and the efficiency of the performance of the sectors financed by them.”
“The government’s fiscal policy of using the budget’s various components (revenue and spending) is the only way to achieve development and economic stability. We need to create the appropriate environment for the work of other economic sectors, to create a diversified economy,” Hammad continued
“Since the general budget represents the most important tool of the government’s financial policy, its importance doubles in the current period, due to the circumstances the country is going through. It is hoped that the implementation of this budget will put into effect the laws and decisions issued by the Parliament to achieve social, financial, political, and security stability. It is also hoped to focus on solving citizens’ problems regarding access to public services, by supporting and rehabilitating the main service sectors such as health and education. It also aims to rationalize public spending by standardizing exchange procedures, and directing public revenues to be used efficiently and fairly among all regions of the country,” the minister noted.
“The budget is also hoped to support and rehabilitate the authorities entrusted with achieving security and stability throughout the country, by rehabilitating the security services of the Ministry of Interior, the courts, and the judiciary. As well as rehabilitating the oil sector as the main source of financing for the public budget, and the electricity sector, given the dependence of all other service and production sectors on the efficiency of this sector. Through the budget, attention will be paid to subsidizing medicines, hygiene, water and sanitation, as well as fuel. It is also relied upon in preparing programs to support young people socially by providing marriage and housing grants, and economically by supporting training, and small and medium-sized enterprises,” he added.
Accordingly, salary estimates are prepared based on standard salary scales in order to “achieve justice among the different groups in society.”
In addition, “a radical solution will be developed and appropriate solutions for the problems of troubled national companies. The third chapter is related to development and projects, which are assessed on their importance, and their geographical distribution across the country.”
The programmes, plans, and strategies mentioned by Prime Minister-designate, Fathi Bashagha are also within this section. These include projects and programs for development, reconstruction, and infrastructure in all parts of the country.
Hammad pointed out that the government “aspires to develop and diversify revenue sources through a set of procedures and controls that achieve this in accordance with the correct law. As well as to encourage the collection of local revenues in municipalities.”
The budget included four chapters:
Chapter One: Salaries and the like, amounting to 41,778,145,200 dinars.
Chapter Two: Operating and running expenses