The Central Bank of Libya has warned of a potential shortfall in public sector salary funding by the end of 2026.
The warning is contained in an official letter to the Ministry of Finance, which states that the increasing expenditure trends in the first chapter of the state budget are causing growing concern.
The monetary institution explains that monitoring of disbursements financed by the Treasury reveals a continuous increase in monthly salary payments. These expenditures averaged 6.211 billion Libyan dinars (LYD) during the first five months of 2026, compared to an average of 6.113 billion LYD for the entire year of 2025.
This trend, while moderate in absolute terms, could have significant budgetary consequences if it continues until the end of the fiscal year. The Central Bank emphasises that maintaining the current trajectory would lead to exceeding the budgets approved by Council of Ministers Decision No. 563, adopted in 2025.
Faced with this situation, the institution has called on the Ministry of Finance to intervene to correct the observed imbalance.
It recommends either adopting measures to contain expenditures or mobilising additional financial resources to cover anticipated needs.
This warning comes in a context where salary expenditures constitute one of the main budget items for the Libyan state. The bank insists on the need to guarantee the continuity of salary payments until the end of the year, while preserving the balance of public finances.
MK/AK/Sf/fss/as/APA