Libya News 24 – Infographic
New data from the Central Bank of Libya reveals that government expenditure surpassed 120 billion Libyan dinars by November 2025. This staggering figure is more than a simple statistic; it is a critical diagnostic tool for understanding the immense pressures on Libya’s public finances. The spending occurs against a backdrop of persistent political division, where competing governments in the east and west have created a fragmented landscape of “spending centers.” This duplication and lack of centralized oversight not only inflate costs but also complicate efforts to achieve fiscal transparency and accountability, making every dinar spent a subject of intense scrutiny.
An Overview of Public Spending
A sectoral breakdown of the spending reveals the nation’s immediate priorities and structural burdens. Topping the list, the Ministry of Finance expended 25.37 billion dinars. This colossal sum is largely indicative of the state’s core, non-discretionary obligations: funding the public sector wage bill, providing essential subsidies (like those for fuel and food), and covering basic operational costs for a sprawling bureaucracy. In essence, this spending is about maintaining the status quo and preventing social collapse.
Following closely, the Ministry of Education spent 19.61 billion dinars, underscoring the massive scale and cost of Libya’s education sector. This encompasses salaries for a vast number of teachers and administrators, as well as the operational costs of schools nationwide. The high spending here highlights both a commitment to human capital and the significant financial weight of one of the country’s largest public employers.
The Ministry of Social Affairs (14.94 billion dinars) and the security ministries—Interior (5.05 billion dinars) and Defense (3.96 billion dinars)—illustrate spending on social stability and security. Social Affairs spending is driven by support programs and cash transfers, a vital lifeline for many Libyans amid economic hardship. The security expenditures reflect the ongoing costs of maintaining parallel police and military structures across divided regions, a direct financial consequence of the political stalemate.
Service and Investment Sectors
Analysis of service sector spending shows a mixed picture of infrastructure and public service funding. The Ministry of Health (4.24 billion dinars) and Higher Education (4.63 billion dinars) represent significant investments in human welfare and development. Meanwhile, spending on Transportation (2.36 billion dinars), Housing and Construction (1.12 billion dinars), and Water Resources (1.09 billion dinars) points to continued, though likely fragmented, investment in critical infrastructure. The variation in amounts suggests prioritization is occurring, but potentially without a unified national development strategy.
Public Bodies and Institutions
Spending by key public institutions reveals additional pressure points. Bodies under the Council of Ministers spent 3.78 billion dinars, while the General Electricity Company recorded 3.59 billion dinars in expenditure. The electricity figure is particularly telling, exposing the massive ongoing subsidy required to keep the grid operational amid chronic fuel shortages, infrastructure decay, and mismanagement—a direct and heavy burden on the treasury. Furthermore, the Authority for Families of Martyrs and Missing Persons (768.7 million dinars) represents the long-term financial legacy of the country’s conflicts, a recurring cost tied to social reparations.
Central Bank of Libya Announces Structure and Priorities of Public Spending
Legislative and Executive Authorities
The spending of political institutions themselves is also illuminating. The House of Representatives and its affiliates spent over 1 billion dinars combined, while the High Council of State and the Presidential Council with its entities spent nearly 700 million dinars. In a divided political landscape, these figures represent the cost of maintaining multiple, competing centers of political authority, each with its own administration and operational needs.
Economic Implications
Expert analysis of this data points to a fundamental challenge: Libya’s spending is overwhelmingly consumptive rather than productive. The budget is primarily focused on running the state apparatus, paying salaries, providing subsidies, and covering operational costs. There is a stark absence of significant capital or investment spending directed towards projects that generate long-term economic growth, such as large-scale infrastructure rehabilitation, economic diversification, or private sector development. For true financial sustainability, observers argue that Libya must move beyond this model. The critical path forward involves controlling discretionary spending, enhancing fiscal transparency to build public trust, and crucially, linking expenditure to concrete structural reforms that can stimulate the private economy and reduce the state’s overwhelming fiscal burden.
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