Chronicles
The initial steps...
The initial steps towards administrative development and civilian government of the Bulgarian lands in the wake of the Liberation were taken as early as the end of 1876, when the Chancery for Civilian Government of Trans-Danubian Lands headed by Prince Vladimir Cherkasky was established at the General Staff of the Russian army. The year 1878 saw the establishment of a Council of Governance of the Russian Imperial Commissioner headed by Prince Dondukov-Korsakov. The council consisted of seven departments with the status of ministries, including a Financial Department and a Customs Department.
Bulgarian National Bank...
1879 - 25 January. Тhe Statute of the Bulgarian National Bank was adopted. Its objectives were to promote the proper development of trade, and to regulate commercial relations and lending. The Instructions on the Activity of the BNB were approved on 21 May 1879. They defined the obligations and activity of the staff, the rules governing banking and accounting operations, the functioning of the bank vaults and their guarding.
The first budget...
1879 - 1 March. Prince Dondoukov-Korsakov approved the Account of Expenditures for Production Purposes from Bulgarian Revenues over the Period from 1 March 1879 to 1 March 1880. The first budget document of the Principality of Bulgaria covered only the spending part denominated in French Francs.
The Constitution and government structure...
1879 - 16 April. Тhe Constitution of the Principality of Bulgaria was adopted. Being one of the most democratic of its time in Europe, the Constitution laid the legal foundations of the Principality as a modern secular national state with bourgeois democratic government. It proclaimed the Principality to be a constitutional monarchy with parliamentary representation. It also regulated the government structure, introduced the principle of separation of powers and granted broad rights and freedoms to the citizens. Furthermore, the Constitution laid down the rules for the drafting and execution of the national budget, as well as the payment of taxes and state charges (beri).
The first Minister of Finance...
1879 - 5 July. Grigor Nachovich was appointed as the First Minister of Finance. Grigor Nachovich was born in Svishtov in 1845. He studied at the School of Commerce in Vienna and at the higher School of Finance in Paris. He graduated in Political and Economic Sciences in Paris. MP in the Constituent Assembly (1879). MP in the 3rd Grand National Assembly and in the 1st, 2nd, 3rd, 5th, 8th, 9th and 10th National Assembly. His was Minister of Finance in the cabinets of: Todor Burmov (1879); Leonid Sobolev (1882 - 1883); in the second cabinet of Dragan Tsankov (1883 - 1884); Stefan Stambolov (1887 - 1888; 1891 - 1892); Bishop Kliment (1879 - 1880) and in the first cabinet of Dr. Vasil Radoslavov (1886).
Structure and activities of the Ministry of Finance...
1879 - 17July. Тhe structure of the Ministry of Finance, one of the six ministries set forth in the Constitution, was determined. The Ministry managed, organized and controlled state taxes, customs duties, fees and charges. It exercised financial control and managed the collection office of the state and its budget. The Ministry managed public properties and drafted bills, decrees, regulations and other statutory acts in the field of the financial and tax policy.
The first taxes...
1880 - 16 May. Тhe Sheep and Pig Tax Act (beylik, sercin) was endorsed. The law on the property tax (emlak), the rent tax (icar) and the occupational tax (temettuat) was also endorsed on the same date.
The Bulgarian Lev...
1880 - 27 May. The Coinage Act, introducing the Bulgarian national currency, was endorsed.
"Article 1. The State shall hold the exclusive right to seigniorage. The National Assembly shall decide what and how many coins to be minted at the proposal of the Finance Minister.
Article 2. The currency unit of Bulgaria shall be the Lev subdivided into one hundred Stotinki.
Audit Office...
1880 - 17 December. Supreme Audit Office Act was endorsed. Its objective was to control the execution of the budget in all government branches. The chief objective of the Supreme Audit Office was to check the state revenue and expenditure accounts related to the budget voted by the National Assembly. On 19 January 1883 the 3rd Ordinary National Assembly voted and adopted a Law on the structure and general management of the National Audit Office. The bill was drafted by the financial inspector Emen Kaye in accordance with the French model.
The Municipalities Act...
1882 - 23 September. The Municipalities Act was endorsed. It regulated the planning of all revenues and expenditures and their voting and allocation by Municipal Councils.
"...Article 59. The budget shall be divided into two chapters: planned expenditures and planned revenues. The amount of the planned expenditures shall not exceed the amount of the planned revenues.
The Budget Accountability Act...
1883 - 28 January. The Third Ordinary National Assembly adopts the Budget Accountability Law
"Article 1. The budget is the act which provides for and authorizes the annual revenues and expenses of the State and of establishments which are made subject to the same rules by the laws.
Article 2. The period during which a budget is in force is called annual budgetary exercise (exercice).
Art. 3. The exercise bears the name of the year during which the budget has been in force. The financial year commences on 1 January and ends on 31 December of the same year."
Tax on spirits...
1883 - 28 April. The Rules of Excise Duty Imposed on Distillation of Spirits were endorsed.
"Article 1. The distillation of rakiya (local brandy) from local and foreign spirits and whatever materials or in whatever way shall be subject to taxation (excise duty) at the rate of 10 % of the value of the drink, ...
Article 16. Local wines, grapes, rakiya and spirits exported outside the boundaries of the Principality shall be exempted from all types of customs duties, while spirits and rakiya shall be exempted also from the excise duty. ..."
The Customs Agreement...
1884 - 30 September. The Customs Agreement signed between the Principality of Bulgaria and Eastern Roumelia on the duty-free importation of local goods was endorsed.
The Customs Act...
1884 - 3 December. The Customs Act was adopted by the 4th Ordinary National Assembly. In accordance with its provisions, the transit period was shortened from six to three months because Bulgaria "is not such a long country". A special chapter was introduced to regulate goods "transported by railway", as well as the transit of goods in "sealed carriages". Duty-free exportation was permitted for tobacco (leaves), wine, rakiya, grapes, fruit and vegetables, books, paintings and "images (church icons)".
The Stamp Tax...
1884 - 3 December. The 4th Ordinary National Assembly voted and adopted the Stamp Tax Act.
"Article 1. A stamp tax shall be levied on various papers and documents as laid down in this Act to the benefit of the treasury.
The real estate rental tax...
1885 - 16 January. The 4th Ordinary National Assembly adopted also the Real Estate (Icar) Rental Tax Act.
"Article 1. The real estate rental tax (icar) shall be a tax levied on the rental value of real estate, except for land which shall be subject to tithe taxation.
Article 2. The real estate rental tax rate (icar) shall be equal to 3 % of the rental income of any real estate which is not subject to tithe taxation."
The Bulgarian National Bank becomes a state lending institution...
1885 - 18 January. The 4th Ordinary National Assembly adopted the Establishment of the Bulgarian National Bank Act, by force of which it becomes a state credit institution. The Bulgarian National Bank performed the following operations: acceptance of cash to interest-bearing and interest-free deposits and current accounts; acceptance of interest-bearing judicial and other public deposits, as well as interest-bearing capital of savings funds; mortgage lending for up to one year; lending and opening of current accounts against collateral in the form of goods, securities, precious metals and precious items; discounting of policies and promissory notes, etc.; discounting of treasury bills and lending to the state against such bills; lending to districts, municipalities, mutual agricultural funds, etc.
Patent Tax Act
1885 - 30 January. The 4th Ordinary National Assembly voted and adopted the Patent Tax Act. Finance Minister Petko Karavelov stated the following in the reasoned opinion on the bill:
"From the very beginning of our Liberation to date the tax system in the Principality has hardly been subject to any changes and today is in the same condition in which it was left by the Russian occupational governance. ...After a more fair evaluation of real estate subject to real estate tax (emlak) the turn has come to reform the income tax (temettuat)which is imposed on all kinds of revenue originating from trade, various industrial occupations and so on..."
Trade agreements...
1887 - 15 December. The 5th Ordinary National Assembly voted and adopted a Conclusion of Trade Agreements with all Countries Act, "and especially the neighbouring ones".
"The Government is hereby commissioned:
1). To conclude trade agreements with all states that so desire and particularly with the neighbouring ones."
The first loan...
1887 - 17 December. The law on the loan of 50 million Leva for the completion of the Tsaribrod - Sofia - Vakarel railway was approved.
"Article 1. It shall be permitted to the Minister of Finance to lend a maximum of fifty million Leva (50,000,000) effectively, to be used to cover the costs for developing the Tsaribrod-Sofia-Vakarel railway line, to cover the obligations undertaken by the state on the buy-back of Rousse - Varna railway ..."
Military Service Act...
1989 - 7 December. The 5th Ordinary National Assembly voted and passed the Military Service Act.
"§ 1. Every Bulgarian citizen shall be obligated to bear the burden of military service.
§ 2. Bearing the burden of military service in respect to the capacity for that service shall be personal. No substitutions or payoffs for such persons shall be permitted. In the case of citizens incapacitated for military service, personal military service shall be substituted for a tax that shall be determined by the conscript commission in compliance with the family and personal material status of the discharged, to the amount of 10 Leva or exceeding that but not exceeding 200 Leva for a period of ten consecutive years. ..."
The first excise taxes...
1890 - 5 December. The Tobacco Act was adopted by the 6th Ordinary National Assembly. It covered the issues related to the growing, processing, taxation and trade in tobacco, as well as penalty provisions.
"...Article 3. Imported raw tobacco shall be subject to customs duties and excise tax, while processed tobacco shall be subject also to excise marking tax.
The first Bulgarian insurance joint-stock company...
1891 - 15 December. The Act on the Approval of Privileges Granted to the First Bulgarian Insurance Joint-stock Company named Bulgaria, in Russe was approved.
"Article 1. The First Bulgarian Insurance Joint-stock Company named Bulgaria, in Russe shall be exempt of the security the other foreign companies provide to the government to insure their clients in Bulgaria."
The industrial and trade marks...
1892 - 11 November. The 6th Ordinary National Assembly adopted the Bill "on Industrial and Trade Marks" tabled by the Minister of Finance which was "...of great importance and benefit to those traders and manufacturers who will use the marks because it would not be possible to forge items and sell one instead of another of the same type, as well as to the treasury because the right to use marks shall be granted by the Government for which purpose stamps will be used in ample quantities and, furthermore, items with forged marks will be seized to the benefit of the treasury. ..."
The Tithe...
1892 - 14 December. The 6th Ordinary National Assembly adopted the Tithe Payment Act at its third regular session. Minister of Finance Ivan Salabashev stated the following in the reasoned opinion on the bill: "The current year shall see the expiry of the Tithe Payment Act of 17 December 1888 and we have to substitute the natural tithe system for monetary payment of this tax. ..."
The Occupational Tax Act...
1894 - 20 December. The Occupational Tax Act was approved as adopted by the 8th Ordinary National Assembly on 19 and 20 December 1894.
"Article 1. Each resident in the Principality, Bulgarian and foreign nationals alike, shall be subject to occupational tax in case the person engages in any industry, trade or occupation beyond the exemptions envisaged in this Act or receives income from movable (capital, valuables, pensions) and immovable properties and others. ..."
Tax collection offices...
1896 - 17 October. The Rules of Organization and Procedure of Chief Tax Collection Offices were approved. These include: the conditions for appointment and dismissal of staff, the types of official activities carried out by the tax offices, rules in conducting correspondence and record-keeping, as well as control.
The Treasury Bills...
1897 - 22 February. The Treasury Bills Issuance Act was approved as adopted by the 9th Ordinary National Assembly.
"Article 1. The Finance Minister shall be entitled to issue treasury bills worth up to twenty (20) million gold Leva to be used for the construction of ports and railroads. ..."
Game cards...
1898 - 16 December. The 9th ordinary National Assembly voted and passed an Act on the Exclusive Right of the State to Prepare, Import and Sell Game Cards by a motion of the Finance Minister. The following was stated in the reasoned opinion on the bill: "With the enforcement of the Excise Duty Act, according to which each pack of cards is subject to excise of 1 Lev, the retail price of cards rose considerably, which occasioned their importation and use in our country in a contraband manner. ..."
Land tax...
1901 - 18 May. The Land Tax Act was endorsed, passed by the 9th Ordinary National Assembly on 24 April 1901.
"Article 1. A land tax shall be levied on all uncovered real estate, such as: a) fields, meadows, gardens, vegetable gardens, melon fields, rose gardens, rice paddies, ploughed fields, pastures, empty spaces and such like; b) vineyards; c) forests, logging areas, undergrowth, thorn fields and locations where smoketree grows."
The Bulgarian Agricultural Bank...
1903 - 31 December. The establishment of the Bulgarian Agricultural Bank was endorsed as a lending institution with a head office. The lending to farm holdings in Bulgaria started with the organization of mutual funds. The first mutual fund was set up in Pirot in the autumn of 1862.
The Salt Act...
1908 - 26 November. The 14th National Assembly adopted the Salt Act. The following was stated in the reasoned opinion on the bill: "The present bill has the objective to reduce the price of salt, which is a commodity of basic need to the population. To this end the state privilege on salt shall be abolished. Salt will only be subject to excise and customs duty to the same amounts as before the introduction of state privileges. ..."
The Bulgarian Central Cooperative Bank Act...
1910 - 1 December. The 14th Ordinary National Assembly adopted the Bulgarian Central Cooperative Bank Act. The Bank was an independent financial institution under the supreme supervision of the State. The purpose of the Bank was to provide loans and assistance to cooperative societies and the cooperative movement in the country.
The tax on automobiles ...
1914 - 1 December. The Minister of Finance Dimitar Tonchev tabled bills on the taxation of automobiles and since "Transportation vehicles have recently been joined by automobiles and bicycles. Be it for actual needs or for exercise, the number of automobiles and bicycles is growing all the time and big capital investments are made in them. I believe that it is time to tax these vehicles which, undoubtedly, generate income for their users. ..."
The War Orphans Fund...
1916 - 13 January. A law was passed on the granting of five percent of the annual net profits of the Bulgarian National Bank, the Bulgarian Agricultural Bank and the Bulgarian Central Cooperative Bank to the Central Managing Committee of the War Orphans Fund in Sofia.
The removal of nickel exchange coins...
1917 - 2 April. The 17th Ordinary National Assembly voted and adopted a law on the removal of nickel exchange coins from circulation and their replacement by coins of another metal. The reasoning in support of the bill read the following: "The ongoing protracted world war caused huge disturbances in the economic life... Thus copper and nickel which are so much needed in the manufacturing of ammunition and other military materials have to be obtained by means of collecting and smelting all items containing these metals.
The excise on wines...
1918 - 4 November. The 17th Ordinary National Assembly voted and passed the Wine Excise Act. In the reasoning in support of the bill Finance Minister Andrei Lyapchev motioned: "...to levy excise tax on wines - local and foreign - because, considering the prices they have today in the market, can sustain, without detriment to either the producers or the consumers, a tax such as provided by the bill."
Cambio monopoly...
1918 - 29 November. The 17th Ordinary National Assembly adopted the law on the trade in foreign legal tenders, receivables and credits. The law followed the model of those adopted in Germany and Austro-Hungary in 1916. It was for the first time that an exchange (cambio) monopoly was introduced in Bulgaria so that to curb the excessive exchange rates during and after World War I and to regulate the trade in foreign exchange.
The Labour Duty Act...
1920 - 28 May. The 19th Ordinary National Assembly voted and adopted the Labour Duty Act. The law introduced compulsory work to public benefit: 12 months for young men and 6 months for young women. Men aged between 20 and 50 had to work for 3 to 28 days a year. The duty was personal and could not be paid in cash. Citizens exempted from labour duty had to pay a special tax.
Income tax...
1920 - 30 June. The Income Tax Act was adopted. The population was divided into 18 groups with a tax rate ranging between 2% and 35 per cent. Single men aged between 30 and 50 were subject to an additional 10%. Repealed in July 1925.
The Financial Inspection Act...
1921 - 3 March. The Financial Inspection Act was approved.
"...Article 43. Eligible to become financial inspectors shall be only persons holding university degrees in law, finance and administrative sciences with at least three years of service in any of the following positions: state advocates, senior assistant managers, expert appraisers at the Ministry of Finance, auditors at ministries, financial officers class I or customs heads class I. ..."
Provisional legal tenders...
1922 - 10 August. The Law on the circulation of provisional legal tenders and the strengthening of the exchange rate of the Lev was approved, as adopted by the 19th Ordinary National Assembly on 29 July 1922. The Minister of Finance Marco Turlakov wrote the following in the reasons supporting the bill: "As a natural consequence of the devaluation of the Bulgarian Lev, the prices of all goods have increased and a greater need is felt for larger monetary circulation to ensure the proper functioning of the national economy."
The tax on gambling...
1924 - 1 August. The Rules for the control of gambling establishments were approved. It determined the tax on the amounts involved in gambling, the tax on the profit of gamblers and the tax on the gross profit of the gambling establishment. The law also regulated the working hours, the type of books, journals, accounts and receipts to be kept, the order at gambling establishments, the state control officials and penalties.
The building of the Ministry of Finance...
1926 - 26 January. On the basis of Report No. 5601 dated 21 December 1925 of the Finance Minister Petar Todorov, the 21st Ordinary National Assembly adopted a law on the acquisition and construction of buildings of the Ministry of Finance.
In 1932, the Ministry of Finance acquired a new building located at 102 Rakovski Street in which it is still today. The design was the work of architect Maria Sapareva who had graduated in architecture at Ecole des Beaux-Arts in Paris. In 1945, the building was extended along Rakovski Street.
Mortgage Lending...
1927 - 20 December. The 22nd Ordinary National Assembly voted and adopted the Mortgage Lending Organization Act. The provisions of the act pertained "only to companies operating in the field of extension of loans to owners of real estate, municipalities, districts and public institutions, secured by mortgage or by pledge of taxes and constant income, at annuity payment, where these companies have received in advance permission by a law voted upon a motion of the Minister of Finance. ..."
Deposit protection...
1931 - 4 January. The Deposits Protection Act was approved. It was for the first time that banking supervision procedures were introduced to protect depositors. Banking licences envisaging the right to collect deposits were to be issued only to banks in the form of joint-stock companies or companies limited by shares. Licences were granted by the Minister of Finance, having heard the opinion of the Bankers' Board.
Chartered accountants...
1931 - 28 March. The Chartered Accountants Institute Act was adopted. The reasons of the bill on that institute read as follows: "...The proposed bill aims at establishing the institute of chartered accountants also in this country under strict state control through the envisaged Supreme Council, which could thus be a valuable assistant and advisor on matters of accounting techniques and in judicial proceedings, liquidation, insolvency, taxation and fiscal issues, etc. ..."
Bulgarian Credit Bank...
1934 - 15 June. The Statutory Ordinance on the establishment of the Bulgarian Credit Bank was endorsed. It was a mixed (public and private) joint-stock company. The Bank had the status of an autonomous public institution with its principal office of business in Sofia. The rights on shares acquired by the state were transferred entirely on the Bulgarian National Bank
State Lottery...
1935 - 3 December. The Statutory Ordinance on the Bulgarian State Lottery was endorsed. It banned all other lotteries in any form in the country. The State Lottery Directorate was entitled to allow charity raffles only with gifts, the total value of which could not exceed 20,000 Leva.
People's Loan Act...
1943 - 2 April . The People's Loan Act was endorsed .
"Article 1. The Minister of Finance shall hereby be permitted to conclude a loan with the people to meet some of the extraordinary expenditures of the state.
Article 2. The loan shall carry 5 % interest, payable annually with coupons or on account. The repayment of the loan shall be effected over a period of 25 years, beginning on 1 October 1944, through annual drawing of lots at equal annual installments featuring interest and repayment. The first draw shall be made on 1 September 1945. The maturity of the first coupon shall be on 1 October 1945 when the first repayment of the loan shall also be paid."
Fees on wedding rings lifted...
1943 - 23 July. The 25th Ordinary National Assembly adopted a Decision to waive the fee on the invoice value of wedding rings. One reads the following in the motives supporting the move: "...that wedding rings are not purchased as an adornment but in abidance by an old tradition, also related to the religious rite, I have the honour to ask the honourable Members to consider and vote the present draft decision in the forthcoming session."
Monetary reform...
1947 - 6 March . A monetary reform was implemented in the People's Republic of Bulgaria. The purpose was to reduce the money supply and to curb inflation. The cash with individual citizens in the amount of up to 2,000 Leva was exchanged in a one-to-one ratio, while any amounts above that threshold were retained as bank deposits and exchanged in a four-to-one ratio.
Nationalization of Enterprises...
1947 - 23 December. The Grand National Assembly voted the Nationalization of Private Industrial and Mining Enterprises Act. The State seized 1,997 larger and 4,027 smaller industrial undertakings.
In the wake of the nationalization and the socialist transformation of the entire national economy, the Ministry of Finance turned into a major lever for the management and development of the overall socio-economic life.
Nationalization of banks...
1947 - 26 December . The Grand National Assembly voted the Banks Act. All private banks were nationalized and a banking monopoly was introduced. Only two state-owned banks were formed on the basis of the previous 31 private banks.
"Article 1. Banking and the conclusion all bank transactions and operations: deposits, credits, commission-agency and commercial shall be the exclusive (monopoly) right of the state..."
Motor Vehicle Insurance...
1948 - 17 November. The Grand National Assembly adopted the Mandatory Motor Vehicle Insurance Act.
"Article 1. Each owner or holder of a motor vehicle, including the State, ...shall contract and maintain an insurance policy with the State Insurance Institute for himself and the drivers used, with a view to covering the full third-party liability of the owner or holder, the drivers and the vehicle itself. ...
Single persons tax...
1950 - 13 March. The Ministry of Finance drafted Ordinance No. II-9 on the payment of a one-off annual tax of 500 Leva pursuant to Article 16 (2) of the Budget Act of the PR of Bulgaria.
"Pursuant to Article 16 (2) of the 1950 Budget Act of the PR of Bulgaria, all single persons, widows and widowers or childless divorced persons aged 21 to 45 for women and 21 to 50 for men, as well as childless married persons of the said ages working at state-owned, cooperative, public or private enterprises shall be subject to a tax of 5 % of their basic salary or wage as from 1 February 1950. The details of the collection and payment of this tax are laid down in Circular Letter No. 1288 ..."
Post Savings Fund...
1951 - 2 March. The Post Savings Fund was transformed into a central deposit-raising institute named "State Savings Fund" with a ramified network of branches all over the country.
Labour Code...
1951 - 9 November. The National Assembly adopted the Labour Code at its fourth regular session by force of Decree No. 544.
"1. This Code shall regulate the labour relations of workers and employees at enterprises, institutions and organizations and the state social security scheme for workers and employees with a view to introducing, implementing and strengthening the socialist principles of labour organization, ensuring higher labour productivity, promoting the wellbeing of working people, protecting their health and providing them against temporary or permanent loss of the ability to work ..."
Monetary reform...
1952 - 10 May. The Council of Ministers and the BCP Central Committee adopted Ordinance No. 405 on the largest-scale monetary reform in the country, whereby 100 old Leva were exchanged for 1 new Lev, without any limitations of the amount. The exchange had to take place in the course of four days from 12 to 15 May.
The Bulgarian Minting House...
1952 - 28 July. The Bulgarian Minting House was set into operation. The minting of Bulgarian exchange and jubilee coins could already be performed entirely within the territory of the country.
The Lev exchange rate...
1961 - 30 December . O the basis of a report of the Minister of Finance and the Governor of the Bulgarian National Bank, Decree No. 255 was adopted on the new content of the Bulgarian Lev and the exchange rate of the Lev for the national currencies of other countries.
"1. The gold content of the Bulgarian Lev shall be established at the level of 0.759548 grams of pure gold as from 1 January 1962.
2. The purchase price of gold for the Bulgarian National Bank shall be established at 1.32 Leva for 1 gram of pure gold.
3. On the basis of the new gold content ...the official exchange rate of the Lev shall be established at the following levels: 1 Rouble for 1.30 Leva and 1 Dollar for 1.17 Leva ...
The export and import of Bulgarian money...
1965 - 30 March. Ordinance No. 1 on the export and import of Bulgarian money was promulgated.
"1. Bulgarian and foreign nationals residing permanently in the People's Republic of Bulgaria may export 10 Leva and exchange them ...
2. Bulgarian nationals travelling abroad on a temporary basis and foreign nationals residing permanently in the People's Republic of Bulgaria may export Bulgarian money in the amount of up to 10 Leva for travelling and other needs ...with the obligation to return this money back to the country ... citizens shall be liable to penalty for failure to return the amount of 10 Leva wholly or in part pursuant to the provisions of the Criminal Code ..."
State Savings Fund...
1967 - 1 December. The 5th National Assembly voted the State Savings Fund Act which was promulgated by force of Decree No. 944 of the Presidium of the National Assembly.
"1. The State Savings Fund shall be a deposit raising and lending institution whose main task shall be to encourage and develop saving attitudes and to organize the deposit raising and lending to the population.
The working week...
1967 - 28 December. The five-day working week was gradually introduced by force of Decree No. 62 of the Central Committee of the Bulgarian Communist Party, the Council of Ministers and the Central Trade Union Council.
State Insurance Institute...
1969 - 4 July. The 5th National Assembly adopted the State Insurance Institute Act.
"1. The State Insurance Institute shall be an organization with the exclusive right to engage in all types of insurance activities within the territory of the Republic of Bulgaria. It shall be a legal entity operating on a cost accounting basis with its principal office of business in the city of Sofia."
Automation of accounting...
1977 - 19 July. Provision was made for accelerated mechanization and automation of financial and accounting activity.
"...(2) The Ministry of Finance and the Committee on Standard Social Information System shall endorse by 30 August 1977 a specification for the mechanization and automation of financial and accounting activity, which shall be mandatory in the development of the programmes for mechanization and automation of financial and accounting activity..."
Turnover Tax...
1979 - 7 August. The Implementing Rules of the Turnover Tax Act were promulgated.
"Article 1....(2) The provisions of these Rules shall be mandatory for the socialist organizations (state-owned, cooperative and public) and their subdivisions which generate taxable turnover from the sale of goods, tickets for performances, sports games, games and other entertainment or receive remuneration for services provided by them ..."
Restriction of the export of goods...
1981 - 29 October. The Council of Ministers adopted Decree No. 36 on the restriction of the export of mass consumption goods by foreign nationals.
"Article 1. (1) It is hereby banned to have foods and non-food mass consumption goods exported by foreign nationals in accordance with the list attached. Any goods found at border check-points shall be seized to the benefit of the State pursuant to the Customs Act and its Implementing Rules."
Closure of Finance Ministry...
1987 - 19 August. A Decree on the structural and personal changes in the Council of Ministers was adopted and a number of ministries, including the Ministry of Finance were closed down. The Ministry of the Economy and Planning was established. Stoyan Ovcharov was appointed head of the new ministry. (page 130) A Ministry of Finance was established again on 20 November 1989 with Belcho Belchev appointed as Minister.
The democratic changes
1990 - 10 - 17 June. The first free and democratic elections for the Seventh Grand National Assembly were held. (page 134) The Grand National Assembly had its solemn opening session on 10 July 1990 in Veliko Turnovo.
First World Bank credit
1991 - 1 July. The World Bank extended its first loan to Bulgaria to the amount of USD 17 million.
Sale of securities...
1993 - 19 August. An agreement was signed between the Ministry of Finance represented by Stoyan Alexandrov, Minister of Finance, and the Bulgarian National Bank, represented by Todor Vulchev, Governor of the BNB and Mileti Mladenov, Deputy Governor of the BNB, on the sale of short- and long-term securities on the primary market.
Agreements on the avoidance of double taxation...
1994 - 31 January. The Minister of Finance approved Instruction No. 1 on the drafting and conclusion of agreements on the avoidance of double taxation, specifying the functions of the head office of the tax administration in connection with the "procedure and manner for the drafting of agreements on the avoidance of double taxation to which the Republic of Bulgaria is a party".
Value Added Tax and the Excise Tax...
1994 - 1 April. The Value Added Tax Act and the Excise Tax Act became effective. Specialized tax offices were set up to administer the two taxes and specialized tax audit services were established.
Securities and Stock Exchanges Commission...
1994 - 14 July. The Securities, Stock Exchanges and Investment Companies Act was adopted and entered into force.
The law envisaged the establishment of the Securities and Stock Exchanges Commission as the regulatory and supervisory authority on the capital market.
State Receivables Agency...
1996 - 13 March. A decree was issued to promulgate the State Receivables Collection Act as adopted by the 37th National Assembly, regulating the status of the State Receivables Agency.
" Article 1. (1) This Act shall regulate the powers of the bodies in charge of the collection and enforcement of state receivables ..."
New BNB Law
1997 - 5 June. The National Assembly debated on and passed the new Bulgarian National Bank Law. This Law changes "both its functions and the set of instruments whereby it can influence the money supply in the country. The Bulgarian National Bank is obligated to ensure the free and unlimited exchange of Levs into German Marks at a fixed exchange rate and to maintain sufficient FX reserves to cover its liabilities", reported Muravey Radev, Minister of Finance, to the Council of Minister in connection with the 1997 Republic of Bulgaria' state budget implementation. On 14 June 1997 the 38th National Assembly made a decision on the introduction of the Currency Board Arrangement in the country.
Cash receipts...
1997 - 18 July. The Ministry of Finance worked out Ordinance No. 6 on the procedure for the issuance of a document (cash receipt) by registered persons for each transaction at retail establishments using electronic cash registers with fiscal memory or electronic systems with fiscal memory which had been registered, approved and set into operation. The Ordinance was approved by the Minister of Finance.
Measures against money laundering ...
1998 - 21 July. The National Assembly issued Decree No. 245 on the promulgation of the Measures Against Money Laundering Act.
"Article 1. (1) This Act shall identify the measures against money laundering, as well as the organization and control of their implementation.
(2) The objective of this Act is to prevent and detect the actions of natural persons and legal entities aimed at the laundering of money acquired through or on the occasion of a crime ...
The Gambling Act...
1999 - 4 June. The Gambling Act was promulgated .
"Article 1 .This Act shall regulate the terms and conditions for the organization of gambling and for the participation in such games, as well as the control on these activities ...
Article 13. The state control on gambling shall be exercised by the State Gambling Commission with the Minister of Finance ..."
Lev denomination...
1999 - 1 July. The Bulgarian Lev was re-denominated exchanging 1,000 old Leva into 1 new Lev. New and old Leva were in circulation until 31 December 1999.
The National Revenue Agency...
2002 - 29 November. The National Revenue Agency Act was promulgated.
"Article 1. This Act shall regulate the establishment, status, structure and activities of the National Revenue Agency, as well as the powers of its bodies ...
Article 2. (1) The National Revenue Agency shall be established as a specialized public authority at the Minister of Finance in charge of the assessment, securing and collection of public receivables ...
It actually began to function on 1 January 2006.
The Tax and Social Security Procedure Code...
2005 - 29 December. The Tax and Social Security Procedure Code was promulgated.
"Article 1. This Code shall regulate the procedures for the assessment of tax and mandatory social security instalments, as well as the securing and collection of the public receivables assigned to revenue authorities and public enforcement bodies ..."
National Strategic Reference Framework
2007 - 22 June. The Minister of Finance Plamen Oresharski and the Commissioner for Regional Policy Danuta Huebner signed the National Strategic Reference Framework (NSRF) of Bulgaria for the period 2007-2013 at an official ceremony.
The National Strategic Reference Framework is the main document matching the Community priorities and the strategic development goals of Bulgaria until 2013. The Framework enables Bulgaria to get access to EUR 6.853 billion from the EU Structural and Cohesion Funds and over EUR 1.128 billion in the form of national co-financing.
Convergence Programme
2008 - November. The Convergence Programme was approved - the first Euro budget after Bulgaria's EU accession for the period 2008-2011.
"The Convergence Programme (2008-2011) of the Republic of Bulgaria is prepared in compliance with the requirements of the process of multilateral fiscal surveillance in the framework of European Union macroeconomic policies coordination ..."
2008
The General government consolidated debt to GDP ratio of the Republic of Bulgaria reached its lowest point. It was reported to be 13%, significantly below the highest admissible value of 60%, established by the Maastricht Treaty (Maastricht convergence criteria).
23 July 2010
The Act amending the 2010 State Budget of the Republic of Bulgaria Act, adopted by the 41st National Assembly on 8 July 2010, was promulgated.
6 January 2011
The Bulgarian Stock Exchange-Sofia AD became a public company and as such the first transaction with its shares was executed on the regulated market.
8 March 2012
In accordance with Article 4 (3) of the Limitation of Cash Payments Act, the process of introducing and implementing card payments by budgetary organizations was initiated. The conditions, order, method and time frame for the gradual transition to the collection of revenues and various proceeds via card payments by the budgetary organizations were determined by instructions from the Minister of Finance and the Governor of the Bulgarian National Bank.
December 2012
The Ministry of Finance began developing and publishing The Budget in Brief information bulletin. It contains a summary of the 2013 Budget and outlines the highlights and priorities of fiscal policy. It is also one of the key Government documents for assessing the budgetary transparency, openness and accessibility for citizens under the Open Budget Survey international initiative. With its publication the Republic of Bulgaria fulfilled its commitments towards the Open Government Partnership global initiative for more efficient management of public resources through increased budgetary transparency.
31 January 2013
The Public Finance Act was adopted by the 41st National Assembly. It regulated the budgetary framework, the general organisation and structure of public finances, and repealed the Organic Budget Law and the Municipal Budgets Act.
Organic Budget Law and Municipal Budgets Act.
30 December 2013
The Minister of Finance approved a Chart of Accounts of Budgetary Organizations and the related Implementation Guidance No. 14/2013, affecting all budget organizations as of 2014.
26 June 2014
The Council of Ministers adopted Decision No. 436, which for the first time approved the classification of expenditures by policy areas and budget programmes for 2015 within the competence and responsibility of the respective first-level spending unit under the budgets of the Council of Ministers, ministries, state agencies and the State Fund Agriculture. The goal was to create a sustainable basis for the development of programme budgeting and the linking of the Government’s policies with the budget.
29 June 2014
In response to the liquidity crisis in the banking sector in June 2014, the placement of Corporate Commercial Bank AD under special supervision and the increased withdrawal of deposits from other credit institutions, Bulgaria developed a Liquidity Support Scheme for preserving the stability of the financial system in the country, with a total budget of 3.3 billion Leva. The scheme was notified to and approved by the European Commission by Decision C (2014)4554 of 29.06.2014 – State Aid SA.38994(2014/N) Liquidity Support to Bulgarian Banks – Bulgaria.
21 April 2015
The Fiscal Council and Automatic Corrective Mechanisms Act came into force, laying down the foundations for an independent advisory body on fiscal governance in Bulgaria.
3 July 2015
By Decree No. 168 of the Council of Ministers, a Coordination Council for the preparation of the Republic of Bulgaria for membership in the euro area was established. The Chair of the Council is the Minister of Finance, who is the national coordinator of our country’s preparations for the introduction of the euro.
22 July 2015
By Order No. 3 of the Council of Ministers, the Fund Manager of Financial Instruments in Bulgaria EAD (FMFIB) was established as a trading company with 100% state shareholding in the capital. The Minister of Finance was designated as a body exercising the rights of the State in the company.
October 2015
Bulgaria joined the international initiatives of the Organisation for Economic Cooperation and Development (OECD) to combat tax evasion and tax avoidance through the exchange of information for tax purposes.
29 December 2015
A new Insurance Code was promulgated, introducing into the Bulgarian legislation the provisions of Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).
1 January 2016
A new Accountancy Act, fully harmonized with the European Union legislation, entered into force.
21 April 2016
The Council of Ministers adopted a decision to extend the participation of the Republic of Bulgaria in the working bodies of the Organisation for Economic Cooperation and Development (OECD) and to join new legal instruments of the organization. Committee on Financial Markets was one of them.
7 June 2016
The Act amending the Public Finance Act was promulgated. Indicators were introduced to monitor the financial situation of municipalities as well as clear criteria for identifying municipalities with financial difficulties.
June 2016
An amendment to the Public Finance Act extended the scope of the official information about the government debt and government guarantees, prepared and published on a monthly basis by the Ministry of Finance. Respectively the publication of official information on the Central Government debt and guarantees was started.
June 2016
The Republic of Bulgaria joined the Incorporating Framework for the introduction of fiscal measures against tax base erosion and profit shifting (BEPS).
8 July 2016
In order to ensure stability and predictability of the legal framework in the area of financial management and control of operational programmes co-financed by the European Structural and Investment Funds, as well as to ensure the principles of sound financial management, Ordinance № N-3 of the Minister of Finance was issued.
30 September 2016
A new Law on the Application of Measures against Market Abuse with Financial Instruments was promulgated.
2016
The amendments to the Public Sector Internal Audit Act in 2016 made compulsory the establishment of audit committees in all ministries, municipalities and the State Fund Agriculture. In this regard, Decree of the Council of Ministers No. 24 of 26 January 2017 adopted an Ordinance on the procedure for determining the composition and activities of audit committees in the public sector organizations.
8 April 2017
The 25th anniversary of the recovery of stock exchange trading and the creation of the Bulgarian capital market was celebrated.
24 October 2017
An all-new State Aid Act, in line with the modernized regime, was promulgated. Provisions were included for heads of budgetary organizations to assess compliance with the legislation in the field. Measures for ESIF projects were tightened.
1 November 2017
By Decision No. 662, the Council of Ministers established an Advisory Council on Public Sector Control and Auditing. Its Chair was the Minister of Finance.
14 November 2017
The Act amending the Public Finance Act was promulgated. It covered the European criteria for fiscal rules requiring follow-up in case of deviations from the set limits.
17 November 2017
The Act amending the Social Security Code was promulgated; it contained substantial amendments to the requirements for the activities and the investment restrictions of the second and third pillar pension funds, as well as other amendments.
November 2017
Since 1 November 2017, investors may trade Bulgarian government securities issued on the domestic market through Bulgarian Stock Exchange – Sofia AD.
1 January – 30 June 2018
The first Bulgarian Presidency of the Council of the EU took place in the first half of 2018. The experts of the Ministry of Finance worked actively to achieve consensus among all Member States, leading to important results in the areas of priority for the Ministry.
29 June 2018
By a letter from the Finance Minister Vladislav Goranov and the Governor of the Bulgarian National Bank Dimitar Radev, the process of participation in the Single Supervisory Mechanism (SSM) started by establishing close cooperation with the European Central Bank in terms of the country’s intention to apply to the Exchange Rate Mechanism II (ERM II), which also received the Eurogroup’s political support.
22 August 2018
The Council of Ministers approved an Action Plan including measures in response to the Republic of Bulgaria’s intentions to join ERM II and the Banking Union by July 2019.
28 September 2018
A five-year joint project with the Organization for Economic Cooperation and Development (OECD) and the Ministry of Finance of the Netherlands in the field of financial literacy (2018-2022) began. Bulgaria participates in it together with Romania, Croatia, Northern Macedonia, Montenegro, Moldova and Georgia.
5 April 2019
The National Assembly adopted the Law on the ratification of the Agreement between the Ministry of Finance of the Republic of Bulgaria and the Organization for Economic Co-operation and Development (OECD), signed in Sofia on 7 March 2019 and in Paris on 21 March 2019, with OECD performing a budget review, assessing Bulgaria for compliance with the “OECD Council Recommendation on Budgetary Governance (2015)”.
18 July 2019
The World Bank Group opened a new office to host shared services in Sofia. The International Bank for Reconstruction and Development provided support for the office’s establishment in line with the agreement concluded between the IBRD and the Government of the Republic of Bulgaria in April the same year.
December 2019
The Republic of Bulgaria joined the Global Revenue Statistics Database of the OECD. In May 2020, the data for Bulgaria on tax revenue for the period 1995 - 2018 were officially published on the OECD website. As of 2020, the Ministry of Finance, in cooperation with the National Statistical Institute, annually provides the OECD with information on tax revenue.
April 8, 2020
In implementation of one of the measures laid down in the Action Plan for the accession of the Republic of Bulgaria to the OECD (2019-2020), from April 2020 the Ministry of Finance became a full member of the International Network on Financial Education (INFE) of the Organization for Economic Co-operation and Development (OECD).
April 30, 2020
The results of the seventh survey of the International Budget Partnership ‘Open Budget Survey’ for 2019 were published. Budget transparency rating of Bulgaria from the survey rose from 66 in 2017 to 71 points, which was the average value for OECD member countries.
July 10, 2020
At the request of the Bulgarian authorities, the finance ministers of the Eurozone member states, the president of the European Central Bank and the finance ministers and governors of the central banks of Denmark and Bulgaria made a unanimous decision to include the Bulgarian lev (BGN) in the Exchange Rate Mechanism 2 (ERM II, BM 2).
October 1, 2020
Bulgaria joined the Single Supervisory Mechanism (through the establishment of close cooperation between the Bulgarian National Bank and the European Central Bank, based on decision (EU) 2020/1015 of the ECB as of June 24, 2020) and the Single Resolution Mechanism (SRM). Both mechanisms were key elements of the EU Banking Union.
February 12, 2021
The Council of Ministers adopts the first National Strategy for Financial Knowledge of the Republic of Bulgaria and an Action Plan (2021-2025) for it.
July 2021
The Republic of Bulgaria, along with 130 other countries, joined to the Common Decision Position on the implementation of Pillar 1 and Pillar 2 rules on taxation challenges arising from the digitalization of the economy under the Inclusive Framework on Plan issues BEPS (Base Erosion and Profit Shifting) to the OECD.
November 3, 2021
The Republic of Bulgaria became a member of the International Development Association (IDA) of the World Bank Group with the status of a contributor.
May 30, 2022
The National Plan for the introduction of the Euro in the Republic of Bulgaria was adopted by Decision of the Council of Ministers No. 344 as of 30.05.2022. The national plan for the introduction of the Euro in Bulgaria was the document on the basis of which the operational work to replace the BGN with the EUR will be implemented. The plan was developed by the Coordination Council for the Preparation of the Republic of Bulgaria for Eurozone Membership, which was co-chaired by the Minister of Finance and the Governor of the Bulgarian National Bank.
August 4, 2022
A Financing Agreement under the Recovery and Resilience Facility (RRF) was signed between the European Commission and the Republic of Bulgaria. The Facility is a temporary tool based on NextGenerationEU, the EU plan is to help the EU to emerge stronger and more resilient from the current crisis.
December 6, 2022
The European Commission and the President of the Eurogroup signed a Memorandum of Understanding with the Republic of Bulgaria by outlining the practical steps that should allow Bulgaria to start producing Euro coins when it receives approval to join the Eurozone.
December 16, 2022
Bulgaria received the first tranche under the National Recovery and Resilience Plan in the amount of EUR 1.37 milliard.
September 11, 2023
The Government Securities Depository at the Bulgarian National Bank joined the Eurosystem securities settlement platform TARGET2-Securities (T2S).
January 19, 2024
The official logo and slogan of the campaign for accession of Bulgaria to the Eurozone are presented. The competition for their selection was announced at the end of October 2023 and won by the student at the National Academy of Arts (NHA) Georgi Georgiev-Arshata.
April 12, 2024
A partnership agreement was signed between the European Commission (EC) and the Republic of Bulgaria for the organization of information and communication campaigns regarding the Euro introduction in the country. The document envisages coordinating the efforts of the Bulgarian and European authorities in order to increase public awareness of the functioning of the Economic and Monetary Union, as well as to support the smooth exchange from BGN into EUR.