The head of the national assembly's finance committee has warned that the deficit may be significantly higher than previous forecasts if oil revenues do not increase.

The General National Congress (GNC) has rubber-stamped the LD56bn ($44.8bn) state budget, which the government had already assumed to be approved.

Recent figures released by the Central Bank of Libya (CBL) show that foreign reserves and assets have fallen by around 15% since the end of 2013.

The government has formed a series of committees to help tackle urgent problems facing the country, including the electricity and fuel shortages.

The interim government says it is facing difficulties in maintaining state spending, blaming the Central Bank of Libya (CBL) for withholding reserves.

The interim government claims the 2014 budget can now be legally implemented because the General National Congress (GNC) has failed to raise any objections in time. 

A finance ministry official says despite plummeting oil revenues, state finances are still not at a critical stage and can cope in the short-run.

Libya's consumer price index fell by almost 1% year-on-year in March, largely thanks to falling food and drinks prices.

The General National Congress (GNC) is expected to vote on the long-delayed 2014 budget next week.

The Central Bank has transferred some LD12bn ($9.6bn) to the government to cover expenses for the first four months of the year, according to the national assembly's finance committee.

The General National Congress (GNC) is today due to discuss the formation of a new government headed by Ahmed Maitig and the yet-to-be-approved 2014 budget.

The ministry has issued a series of instructions aimed at limiting state spending, with government finances in crisis due to ongoing low oil exports.

The head of the ministry's planning department says he expects fuel subsidies to jump to LD14bn ($11.2bn) in 2014.

The General National Congress (GNC) has again delayed the vote for the 2014 budget, with the vote now due to take place on 18 May.

The draft version of the 2014 budget, on which the General National Congress (GNC) is due to vote soon, proposes a fall in salaries but increases subsidies by around 24%.