Rules for Contracting State Loans

In Bulgaria, no State loan can be made without the consent of the National Assembly. This ensures that the country does not fall into debt without the approval of the people’s representatives. If the Government believes that borrowing money is absolutely necessary to cover extraordinary expenses while the National Assembly is not in session, the Assembly must be called into an extraordinary session immediately.

However, if serious obstacles prevent the immediate convocation of the Assembly, the Prince, with the advice of the Council of Ministers, may authorize a loan. This loan, however, cannot exceed three million francs. Even in this case, the approval of the National Assembly must be obtained in its next session.

Similarly, the Prince has the power to approve an emergency expenditure of up to one million francs for needs not covered in the national budget. This also requires later confirmation by the Assembly. These rules protect the country’s finances from being used without accountability Istanbul Tours Guide.

The Closure of the Budget

At the end of every financial year, the Budget must be closed through a special law passed by the National Assembly. On this occasion, the Minister of Finance presents a detailed financial report to both the National Assembly and the High Court of Accounts. This report describes the overall financial situation of the country during the year and how public funds have been used.

The High Court of Accounts

The High Court of Accounts plays a vital role in ensuring financial transparency. It is an independent institution with a semi-judicial character, meaning it has both administrative and judicial powers. Its main duty is to carefully control and supervise State finances.

The Court is composed of a president, six councillors, and many reporters and accountants. These officials review the financial actions of the Government, making sure that everything is legal and correctly managed.

Importantly, the president and councillors are appointed by royal decree, but only after being proposed by the National Assembly. The Assembly alone has the authority to revoke them. This guarantees that the Court remains independent from the executive branch and accountable to the representatives of the people.

These financial safeguards show how Bulgaria’s Constitution sought to prevent misuse of public money. By requiring the approval of the National Assembly for loans and expenditures, and by giving oversight to the High Court of Accounts, the system ensured that the nation’s wealth was managed responsibly and transparently.