Digital transformation as an approach to reforming public finances and achieving economic sustainability in Libya

Abstract

This research aims to examine digital transformation as an approach to reforming public finance and achieving economic sustainability in Libya during the period (2008–2024). The study begins with an analytical review of the theoretical framework of public finance and fiscal sustainability, then explores the potential role of digital transformation in improving the efficiency of fiscal management. The research adopts a descriptive and analytical methodology, relying on official data from the Ministry of Finance and the Central Bank of Libya, as well as reports from relevant international institutions.

The findings reveal that Libya’s public finance suffers from a structural imbalance, mainly due to heavy dependence on oil revenues and weak tax performance, leading to significant fluctuations in the national budget and long-term fiscal instability. The results also indicate that adopting digital transformation in financial administration can effectively enhance transparency, accountability, and expenditure efficiency through electronic payment systems and integrated financial databases.

The study recommends accelerating the implementation of comprehensive digital transformation programs in the public financial sector, developing technical infrastructure and human capacities, and diversifying revenue sources to achieve long-term fiscal and economic sustainability.