The Deputy Governor of the Central Bank, Ali Al-Hibri, responded in an article to a televised speech by Prime Minister Abdel Hamid Dbeibah, by saying that the expansion of spending will lead to an increase in the demand for foreign and domestic exchange.
This will affect the level of inflation, which will lead to a decrease in the state’s reserve of cash, considering that what he called the devotion to the idea of a rentier state by spreading the rich state is an inappropriate directive for the Libyan economy.
In the article, Al-Hibri attributed the reason for the inappropriateness to the fact that the state suffers from a public debt of more than 150 billion dinars, and the absence of fiscal policy and the role of the Ministry of Finance in form and content, in addition to the expansion of public consumer spending to a degree that is difficult to control without logic.
Al-Hibri considered that among the reasons referred to is the absence of planning and strategic vision to diversify the economy, adding that the focus on the free state and the continuation of the chain of wealth distribution constitutes a negative phenomenon to attract people.
Al-Hibri pointed out that the existing structural deficit in the Libyan economy is a permanent condition, noting that what he described as the state of great exposure in the Libyan economy, which exceeded 80% in dependence on external economies, needs a serious pause.
Al-Habri advised the necessity of rationalization and not extravagance, which was recently represented in the inclusion of public companies in the salary scale in a strange waste of public money, as he described it.
It is worth noting that the Dabaiba government placed itself through the expansion of spending between the criticism of public sector demands and the criticism of political figures.
The Minister of Education in the former Government of National Accord, Othman Abdel Jalil, saw that the expansion of salary increases would shackle and exhaust the Libyan economy.
