Thursday, the Prime Minister’s Economic Affairs Advisor, Mazhar Mohammed Salih, explained the extent of the impact of the decline in oil on government spending from the federal general budget.
Saleh said in a statement to Al-Maalouma Agency, “Based on the provisions of the Federal General Budget Law (the Triennial), the principles of the law were designed to confront the risks of external financial shocks that may be caused by the oil assets cycle, specifically periods of decline.”
He added, “The average price of a barrel of oil to determine the revenues of the three-year budget is about $70 per barrel, with a hypothetical deficit of 64 trillion dinars to confront any emergency situations facing the financial system in the face of price shocks in the global oil market and for each fiscal year of the three-year general budget.”
Saleh pointed out that “the main goal of this conservative financial planning is to secure spending priorities in the country’s general budget, foremost of which are government salaries and wages, retirement pensions, social care, and development and reconstruction projects that are a priority in sustainable development.”
On Monday, June 12, 2023, the House of Representatives approved the three-year financial budget law for 2023, 2024 and 2025. The budget approved more expenditures and investments as a direct result of the increase in oil revenues, which constitute 90% of the country’s revenues, at a price of $70 per barrel.
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