Libya's rival eastern and western authorities have approved the country's first unified national budget in over 13 years, marking a rare moment of consensus in the fractured state. The agreement, mediated by the United States, was signed by Issa Al-Arebi, representing the Benghazi-based House of Representatives, and Abdul Jalil Al-Shawish, representing the Tripoli-based High Council of State. Libya's central bank confirmed the development on Saturday, describing it as a milestone in unifying fiscal policy and improving public financial management. The country has remained politically split since the 2011 uprising that ousted Muammar Gaddafi, with a UN-recognised government in Tripoli led by Prime Minister Abdulhamid Dbeibah and a rival administration in the east backed by military commander Khalifa Haftar. Despite earning $22 billion in oil revenue last year—a 15 percent increase from 2022—Libya faces a $9 billion foreign currency deficit. The central bank had devalued the dinar by nearly 15 percent in January 2023 due to fiscal instability linked to the absence of a unified budget. Officials credited the US for its mediation role, with Dbeibah acknowledging Trump's senior adviser on Arab and African affairs, Massad Boulos, for supporting the process. Dbeibah called the agreement a promising step but stressed that real success depends on sustained commitment and tangible improvements for citizens.
Abdulhamid Dbeibah's cautious endorsement of the budget deal exposes the fragile reality behind Libya's diplomatic optics—unity on paper does not mean cohesion on the ground. His emphasis on "serious commitment" reveals deep scepticism about whether rival factions, particularly Khalifa Haftar's eastern administration, will honour fiscal cooperation when political power remains contested. The fact that US mediation was required to achieve what should be a basic function of governance underscores how institutional collapse has become the norm.
The $22 billion in oil revenue—Libya's economic lifeline—continues to enrich elites while ordinary citizens endure currency devaluation and financial instability. A $9 billion foreign exchange deficit persists despite massive earnings, indicating systemic leakage and mismanagement. The central bank's praise for American involvement suggests Libyan institutions lack the autonomy to resolve internal disputes, reinforcing a pattern of dependency on foreign actors to perform basic state functions.
For Libyans, especially those in regions excluded from oil revenue distribution, this agreement offers little immediate relief unless budget implementation is transparent and inclusive. The devaluation of the dinar has already eroded purchasing power, and without accountability, the new budget may deepen regional inequalities.
This moment fits a broader trend across post-intervention North Africa: political theatrics substituting for structural reform. Agreements are celebrated, but power remains siloed, and citizens pay the price.
