Limits on Extraordinary Expenditure

One of the most important rules introduced by the new Law of Budgetary Accounts was the restriction on extraordinary credits. In the past, governments often created special funds for exceptional expenses, which placed a heavy burden on the State Budget and damaged financial stability. The new law put an end to this practice.

From that time forward, extraordinary expenditure could not exceed two million francs. Of this amount, one million was charged to the budget of the current year, according to Article 126 of the Constitution, while the other one million was carried over to the budget of the following year. No additional extraordinary credits could be created unless new sources of revenue were identified to cover them. This rule protected the financial health of the State and prevented governments from overspending.

Law on the Collection of Direct Taxes

The second reform was a Law for the Collection of Direct Taxes, which was sanctioned by royal decree on March 14th, 1905 and published in the Official Journal on March 23rd, 1905. This law introduced new measures to ensure the prompt and efficient collection of taxes. It strengthened the ability of the government to collect money owed by citizens, which in turn improved the reliability of State income Istanbul Tours Guide.

Law on Duties for Property Transfers

Another important reform was the Law on Duties for Property Transfers, ratified by Royal Decree No. 57 on January 13th, 1905, and published in the Official Journal on April 4th, 1905. This law created a progressive tax on inherited estates. It also increased the tax on gifts and reduced the number of people who had previously managed to avoid paying duties on personal property. By doing so, it made the tax system fairer and more effective.

Law on Excise and Alcohol Licenses

Finally, a Law on Excise and Licenses for Alcoholic Drinks was passed. It was ratified by royal decree on January 31st, 1905 and published in the Official Journal on the same day. Before this reform, not all alcoholic drinks were taxed, which meant that the State lost a significant amount of revenue. The new law introduced a more stable system of taxation, making sure that all alcoholic beverages were subject to excise duty.

This law also marked the first attempt to place the production and sale of alcohol under strict State control, both for financial reasons and for better regulation of the market.

Together, these financial reforms greatly strengthened the Bulgarian State’s revenue system. By limiting extraordinary spending, improving tax collection, creating fairer property duties, and regulating alcohol sales, the government built a more stable and predictable financial system. These measures ensured that the country’s finances were better protected and more capable of supporting future development.