Tripoli, March 2, 2012 (AFP)
Libya’s 2012 proposed budget draws heavily on oil revenues, forecast to reach about $54 billion or (41 billion euros), to compensate for the loss of corporate tax revenues in last year’s conflict.
“Libyan state revenues for this year will depend heavily on oil revenues,” a senior official was quoted as saying late Thursday.
“The National Oil Corporation projects oil revenues at about 41 billion euros,” or around $54 billion, the interim government said in a report on its budget debate.
It said the budget was heavily reliant on the oil sector to compensate for losses in corporate tax revenues, as both private and public firms had suffered financial losses in the 2011 conflict that ousted Moamer Kadhafi.
Libya’s interim government has proposed a 2012 budget of $55 billion as the country undertakes reconstruction efforts and gears up for its first elections since Kadhafi’s regime was toppled.
The proposed budget must be approved by the ruling National Transitional Council.
The North African nation’s gross domestic product fell by about 60 percent last year, but International Monetary Fund (IMF) projections say it could rebound with a near 70-percent expansion this year and 20 percent in 2013.
Libyans are to elect a constituent assembly in June.
