Libya’s rival eastern and western institutions have agreed the country’s first unified state budget in more than 13 years, in a rare breakthrough that could ease one of the most persistent sources of economic dysfunction in the oil-rich but politically fractured North African state. The deal, announced by the Central Bank of Libya and reported by Reuters, brings together the eastern-based House of Representatives and the Tripoli-based High Council of State around a single public spending framework worth 190 billion Libyan dinars (about $29.95 billion).
The agreement matters because Libya has remained split for years between the UN-recognised Government of National Unity in Tripoli, led by Prime Minister Abdulhamid Dbeibah, and a rival eastern administration in Benghazi backed by military strongman Khalifa Haftar. Since the 2011 uprising that toppled Muammar Gaddafi and the renewed fragmentation that followed the 2014 civil war, the absence of a single national budget has been both a symbol and a driver of the country’s division. The central bank described the new arrangement as “the first consensus on unified spending across Libya in over 13 years” and said it represented real progress toward fiscal unification and better management of public money.
Under the agreement, the budget includes 73 billion dinars for salaries, 40 billion for development projects, 37 billion for subsidies, 18 billion for family allowances, 12 billion for the National Oil Corporation, and 10 billion for operational spending, according to Reuters. The internationally recognised administration in Tripoli is expected to oversee salaries, subsidies and operating costs, while development priorities will be jointly determined under central bank supervision.
The breakthrough comes at a time of mounting financial strain despite strong oil income. The Central Bank of Libya said the country generated around $22.1 billion in oil revenues and royalties in 2025, up more than 15% from the previous year, but still recorded a foreign currency deficit of about $9 billion as demand for hard currency outpaced inflows. In January, the bank devalued the dinar by nearly 15% for the second time in less than a year, citing factors including political division, rising public spending and the lack of a unified budget.
Both Libyan and U.S. officials linked the deal to quiet American mediation. The central bank praised the “positive role” of the United States, while Dbeibah thanked President Donald Trump’s senior adviser for Arab and African affairs, Massad Boulos, for supporting the effort. Libya, which holds Africa’s largest proven oil reserves at about 48.4 billion barrels and is producing roughly 1.5 million barrels per day, hopes the agreement will strengthen financial stability and help raise output toward 2 million barrels per day. Still, Dbeibah cautioned that the real test would be whether all parties now follow through in a way that improves daily life for ordinary Libyans.
