Libya needs to establish a clear macro-fiscal policy framework with a consistent fiscal rule reflecting the country’s economic objectives and the volatile nature of revenues, says a report from the International Monetary Fund (IMF).
It adds that the Sovereign Wealth Fund (SWF) managed by the Libyan Investment Authority (LIA) and the Budget Reserve Account at the Central Bank of Libya (CBL) should be fully integrated in this framework.
The creation of a Macro-Fiscal Policy Unit (MFU) at the Ministry of Finance (MoF) in charge of elaborating medium-term fiscal projections and analysis will enhance fiscal policy formulation and help make the budget a strategic policy tool linking national policy objectives to macro economic performance.
The full report from the IMF can be found here.
(Source: IMF)
