The International Monetary Fund has affirmed Libya’s urgent need for a transparent budget that reduces costs associated with high spending on public sector wages and subsidies.
The fund indicated in a report that public sector salaries dominate government spending, as about 2.2 million people – a third of the population – work by default in the public sector, and subsidies and grants amount to about a quarter of spending.
He also noted that fuel subsidies are particularly problematic, with the domestic price of gasoline at 3 cents per liter, the second lowest in the world.
The fund added that Libya needs a clear economic strategy, which represents an opportunity to mobilize the public behind a plan that works to improve the use of oil revenues to diversify the economy, and the success of reforms will depend on achieving a stable political and security environment and developing institutional capabilities.
Source: Libyan News Agency