Libya's Q1 figures confirm continued dominance of oil in revenues and pressure of state salary bill on expenditure

Libya's public finances remain heavily reliant on oil, with revenues from the sector constituting nearly 97.5% of total public income in the first quarter of 2026, according to an official source at the Central Bank of Libya (CBL).

This overwhelming dependence on oil highlights persistent structural challenges. Non-oil revenues contributed a mere 600.4 million dinars, underscoring the urgent need to diversify the economic base and bolster alternative income streams.

The significant portion of public expenditure dedicated to salaries, approximately 79%, continues to place immense pressure on the national budget. This leaves limited fiscal space for crucial development and investment projects. The absence of recorded expenditures under the development category in the first quarter is attributed to the public expenditure approval and disbursement cycle, not necessarily a halt in planned projects.

The CBL is committed to improving financial disclosure and transparency. The publication of economic bulletins serves to provide the public, researchers, and economic institutions with accurate and regular tracking of public finance developments. Total public revenues reached 24.27 billion dinars in Q1 2026, against expenditures of 15.25 billion dinars.