مجلة دراسات الإنسان و المجتمع

The problem of increasing public spending with limited public revenues, primarily dependent on the oil sector, creates an imbalance between revenues and expenditures, leading to a budget deficit for the state. Therefore, financial policies are needed to protect public funds from waste and extravagance. One of these reform policies is the policy of rationalizing public spending to enhance the efficiency and effectiveness of public expenditure allocation. This does not mean reducing spending to the point of not achieving the desired objectives. This research aims to explore the current state of public spending in Libya, examine the mechanisms used to rationalize it, identify the challenges faced in its implementation, and arrive at a set of findings and recommendations. The research was conducted using a descriptiveanalytical method based on published data from relevant agencies related to the research topic. The research reached several findings, the most important of which is that public spending rationalization policies have not fulfilled their intended purpose of controlling public expenditure and reducing waste of public funds. Additionally, a budget deficit does not always indicate a shortfall in revenue, as financial and administrative corruption is among the major factors that limit the ability to cover public expenditures. The research concluded with several recommendations, the most important being the need to diversify the economy with activities of a productive nature through the rationalized use and investment of oil resources........... Keywords: .....Public Spending, Rationalization, Budget, Public Funds, Public Revenues.