The US State Department said in the Fiscal Transparency Report 2021 that Libya’s fiscal transparency would be improved by publishing complete and reliable budget documents within a reasonable period of time; and by disclosing in its budget documents information on debt obligations, including state-owned enterprise debt and other financial data; publishing expenditures to support executive offices.
The report reiterated that Libya's fiscal transparency would also be enhanced by establishing a supreme audit institution that meets international standards of independence; subjecting military and intelligence budgets to further civilian oversight; and fully adopting internationally accepted accounting principles.
In addition, it would also be improved by making supreme audit institution reports of the government’s executed budget and state-owned enterprises publicly available within a reasonable period of time; and ensuring the sovereign wealth fund discloses its source of funding or general approach to withdrawals.
"Internal political and civil conflict has prevented the Libyan government from fully implementing its budget processes, which has adversely affected fiscal transparency and the country’s operations. An end-of-year budget report was available online. Only limited information on debt obligations, including state-owned enterprise debt, was publicly available." The report added.
It said earnings and some financial allocations to the National Oil Corporation (NOC) were included in the budget; in addition, allocations to another major state-owned enterprise, the General Electricity Company of Libya, were not explicitly outlined in the budget.
"Publicly available budget documents were not substantially complete and lacked sufficient detail. Audit reports for large state-owned enterprises, such as the NOC, were not publicly available, although the NOC is independently engaged in efforts to boost its transparency by digitizing its operations and improving its corporate governance structure." The report explained.