Libya’s internationally recognised government in Tripoli announced on Friday the approval of a unified state budget for the first time in more than thirteen years, marking a significant step toward normalising the war-ravaged nation’s public finances and potentially laying the groundwork for broader national reconciliation.
The budget, worth approximately 96 billion Libyan dinars (roughly $19.5 billion), was passed by the Tripoli-based House of Representatives after months of negotiations. It covers the period from April 2026 through December 2026, after which the government intends to return to a standard calendar-year budgeting cycle.
The last unified national budget was approved in 2013, before the NATO-backed uprising that toppled long-time ruler Muammar Gaddafi descended into factional fighting, splitting the country between the Tripoli government and the rival administration based in the eastern city of Benghazi, backed by the Libyan National Army under General Khalifa Haftar.
The 2026 budget allocates the largest share — nearly 35 percent — to reconstruction and infrastructure projects, reflecting the government’s priority on rebuilding roads, bridges, and public utilities damaged during years of conflict. Education and healthcare together account for another 28 percent, while defence spending has been capped at 18 percent, down from an estimated 40 percent in some previous eastern budgets.
“This budget belongs to every Libyan,” said Finance Minister Yakub al-Mansour at a press conference in Tripoli. “It reflects the dreams of a population that has suffered enormously. We are rebuilding not just buildings but the foundations of a modern state.”
International Monetary Fund officials, who have been advising Tripoli on fiscal restructuring, welcomed the development. “A single budget is a precondition for macroeconomic stability and for unlocking international reconstruction financing,” said an IMF spokesperson. “We encourage all Libyan institutions to support its implementation.”
Oil production, which remains Libya’s primary source of revenue, has been targeted at 1.4 million barrels per day — an ambitious figure given the frequent disruptions caused by militia interference at export terminals. The budget assumes an oil price of $65 per barrel, providing a small buffer against market volatility.
One of the most contentious elements of the budget is the distribution of oil revenues among the country’s multiple constituencies. Wealthy coastal regions have historically received disproportionate spending relative to their populations, while the historically marginalised south and western mountain communities have seen far less investment. The new budget reportedly increases the allocation to southern regions by approximately 15 percent, though critics say more fundamental changes are needed to address structural inequality.
Still, the symbolism of the moment was not lost on ordinary Libyans. In Tripoli’s bustling souks, merchants spoke of cautious optimism. “We have heard promises before,” said Ahmed, a spare parts trader in the Souq al-Jum’a market. “But a real budget means real reconstruction, and reconstruction means jobs. We need jobs.”
The Central Bank of Libya, headquartered in Tripoli, is expected to manage the unified budget’s disbursements, though the institution has itself been a source of controversy, with competing boards claiming legitimacy. International partners have called for a unified central bank as a next critical step in consolidating the country’s fragmented state apparatus.
Libya to have first unified state budget in 13 years
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