Libya faces fiscal crisis amid 69 billion dinar parallel spending

Libya is facing a significant fiscal challenge as parallel spending is estimated to have reached approximately 69 billion dinars. This surge in spending, highlighted by Central Bank of Libya Governor Naji Issa, has raised concerns regarding the lack of financial oversight and the widening gap between public resource management and the state's ability to unify its budget.

Experts warn that the current spending pattern, which heavily prioritizes current expenditures such as salaries and fuel subsidies over productive development projects, threatens the stability of the Libyan dinar and depletes foreign exchange reserves. Salary costs alone are projected to exceed 100 billion dinars this year. Analysts suggest that addressing this crisis requires a comprehensive package of reforms, including unifying the national budget, regulating import allocations, and tightening customs controls to prevent the outflow of goods to neighboring countries.