Tax Policy of the Republic of Bulgaria for the Period 2007-2013
The fiscal policy, conducted by the state, in its two dimensions - government revenues and their targeted allocation in accordance with the socio-economic needs (government expenditures) - is the basis of the national economy development. The accumulation of sufficient state’s revenues in order to e...
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Інститут економіки промисловості НАН України
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irk-123456789-876312015-10-23T03:02:20Z Tax Policy of the Republic of Bulgaria for the Period 2007-2013 Pavlova, M. Finance The fiscal policy, conducted by the state, in its two dimensions - government revenues and their targeted allocation in accordance with the socio-economic needs (government expenditures) - is the basis of the national economy development. The accumulation of sufficient state’s revenues in order to ensure its expenditures is a task of primary importance, especially in terms of macroeconomic instability, when the government intervention is essential for the timely overcoming of the economic recession or crisis. In this regard, the analysis of the revenue side of the consolidated fiscal program and the evaluation of ongoing state policy of the Republic of Bulgaria in times of economic crisis are current topics with scientific and applied interest. In the study, the importance of the separate tax forms for the state treasury is revealed, tendencies and tax forms’ development through structural and dynamic analysis of the revenue part of the consolidated fiscal program are outlined and the state tax policy for the period 2007-2013 is estimated. Бюджетна політика, що проводиться державою, має два виміри - урядові доходи і їх цілеспрямоване розміщення відповідно до соціально-економічної необхідності (урядові витрати) - лежить в основі розвитку народного господарства. Накопичення доходів достатніх державі для того, щоб гарантувати її витрати - завдання першорядної ваги, особливо в термінах макроекономічної нестійкості, коли урядове втручання істотне для своєчасного подолання економічного спаду або кризи. В цьому відношенні, аналіз митної сторони консолідованої фінансової програми і оцінки тривалої державної політики Республіки Болгарія за час економічної кризи - поточні теми з науковим і прикладним інтересом. Бюджетная политика, проводимая государством, в нем два измерения - правительственные доходы и их целенаправленное размещение в соответствии с социально-экономической необходимостью (правительственные расходы) - лежит в основе развития народного хозяйства. Накопление доходов достаточных государству для того, чтобы гарантировать его расходы - задача первостепеннойважности, особенно в терминах макроэкономической неустойчивости, когда правительственное вмешательство существенно для своевременного преодоления экономического спада или кризиса. В этом отношении, анализ таможенной стороны консолидированной финансовой программы и оценки продолжающейся государственной политики Республики Болгария за время экономического кризиса - текущие темы с научным и прикладным интересом. 2014 Article Tax Policy of the Republic of Bulgaria for the Period 2007-2013 / M. Pavlova // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 115-120. — Бібліогр.: 10 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/87631 336.22 (497.2) en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
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Finance Finance |
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Finance Finance Pavlova, M. Tax Policy of the Republic of Bulgaria for the Period 2007-2013 Економічний вісник Донбасу |
| description |
The fiscal policy, conducted by the state, in its two dimensions - government revenues and their targeted allocation in accordance with the socio-economic needs (government expenditures) - is the basis of the national economy development. The accumulation of sufficient state’s revenues in order to ensure its expenditures is a task of primary importance, especially in terms of macroeconomic instability, when the government intervention is essential for the timely overcoming of the economic recession or crisis. In this regard, the analysis of the revenue side of the consolidated fiscal program and the evaluation of ongoing state policy of the Republic of Bulgaria in times of economic crisis are current topics with scientific and applied interest. In the study, the importance of the separate tax forms for the state treasury is revealed, tendencies and tax forms’ development through structural and dynamic analysis of the revenue part of the consolidated fiscal program are outlined and the state tax policy for the period 2007-2013 is estimated. |
| format |
Article |
| author |
Pavlova, M. |
| author_facet |
Pavlova, M. |
| author_sort |
Pavlova, M. |
| title |
Tax Policy of the Republic of Bulgaria for the Period 2007-2013 |
| title_short |
Tax Policy of the Republic of Bulgaria for the Period 2007-2013 |
| title_full |
Tax Policy of the Republic of Bulgaria for the Period 2007-2013 |
| title_fullStr |
Tax Policy of the Republic of Bulgaria for the Period 2007-2013 |
| title_full_unstemmed |
Tax Policy of the Republic of Bulgaria for the Period 2007-2013 |
| title_sort |
tax policy of the republic of bulgaria for the period 2007-2013 |
| publisher |
Інститут економіки промисловості НАН України |
| publishDate |
2014 |
| topic_facet |
Finance |
| url |
http://dspace.nbuv.gov.ua/handle/123456789/87631 |
| citation_txt |
Tax Policy of the Republic of Bulgaria for the Period 2007-2013 / M. Pavlova // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 115-120. — Бібліогр.: 10 назв. — англ. |
| series |
Економічний вісник Донбасу |
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AT pavlovam taxpolicyoftherepublicofbulgariafortheperiod20072013 |
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2025-07-06T15:17:09Z |
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2025-07-06T15:17:09Z |
| _version_ |
1836911197337681920 |
| fulltext |
M. Pavlova
115
Економічний вісник Донбасу № 4(38), 2014
UDC 336.22 (497.2)
Mariyana Pavlova,
PhD (Economics),
D. A. Tsenov Academy of Economics, Bulgaria, Svishtov
TAX POLICY OF THE REPUBLIC OF BULGARIA FOR THE PERIOD 2007-2013
The state fiscal policy as a set of decisions, norms
and regulations of the central government authorities in
terms of distribution and redistribution of the national
income pursues economic and social objectives whose
fulfillment would be unattainable in the absence of
financial resources ensuring their achievement. The
accumulation of sufficient state’s revenues in the state
treasury and their targeted allocation by state expendi-
tures determine the possibility of the state to influence
the socio-economic processes emphasizing the im-
portance of state revenues for the national economy.
This significance is especially obvious in terms of
economic recession and crisis when the insufficiency
of the accumulated own revenues in the state treasury
imposes a demand for loan resources or a reformative
approach to tax policy in order to overcome the impact
of negative effects.
It is known that the magnitude and directions of
the ongoing national expenditures are highly dependent
on the size and structure of budget revenues. In view of
their importance for the existence of the state and the
implementation of its functions, the subject of this
research is the tax policy of the Republic of Bulgaria
and its consolidated monetary fund for the period
2007-2013. The goal which the author sets is to reveal
the importance of separate sources of revenue for the
state treasury and to outline trends in their develop-
ment by structural and dynamic analysis of the revenue
part of the consolidated fiscal program (CFP) and the
assessment of the ongoing state policy in times of eco-
nomic crisis.
In accordance with the adopted by the Republic of
Bulgaria methodology of accounting, the revenue side
of the consolidated state budget is formed by tax and
non-tax revenues and grants. The most significant
component of this revenue part is the tax revenue –
around 77% of all annual revenues.1 In 2007, 80% of
the disposable revenue of the Republic of Bulgaria was
provided by grants and final payments (taxes); 15%
was provided by property, state fees, fines, penalties
and penalty interests; and 5% – in the form of aid.
Given the fact that 2007 is the year of our accession to
the EU, of great interest is the study of changes in fi-
nancial flows of tax revenues as a result of changes in
indirect taxation in connection with the fiscal harmoni-
1 For more details see: Adamov, V. Theory of Fi-
nance, The “Education and Science” research library, Vol.
100, Tsenov Academic Publishing House, 2015, p. 86-
103.
zation with the EU. It is also interesting to trace the
reduction in a tax burden of direct taxes for stimulating
investments, the growth in a production and the in-
crease in real income of households.
Changes in the tax policy of the Republic of Bul-
garia in 2007 were:
• New taxation regime with the Value Added
Tax (VAT) in a connection with the fiscal harmoniza-
tion;
• An increase of excise rates and an expansion
of the range of entities, subjects to excise duty;
• The tax rate reduction of the corporate income
tax by 5%;
• An increase of taxable minimum in the com-
bined tax progression and an increase of tax relief for
children;
• The taxation of foreign individuals under the
Personal Income Tax Act which were outside the scope
of the Corporate Income Tax Act.
In the year of the accession of the Republic of
Bulgaria to the EU, 19.3 billion BGN tax revenues
were accumulated in the state treasure, taking into
account the growth of 18% compared to 2006. The
most important significance of this had reforms in the
field of the taxation of personal income, corporate
profits and excise duties. The decrease in the tax rate of
the corporate income tax from 15% to 10%, in terms of
high corporate economic activity, resulted in an in-
crease in revenues from taxes on profits in the amount
of 37% year-over-year2. Revenues from the personal
income tax increased by the same amount. The leading
cause of this was the introduced at the beginning of the
year changes, aimed at reducing the tax burden (by
increasing the non-taxable minimum) and increasing
real incomes of the population. Also incomes of for-
eign individuals were taxed under a new methodo-
logy – the Personal Income Tax Act with a withholding
tax, not under the Corporate Income Tax Act. The
increase of excise duties and the expansion of the range
of taxable goods positively affected the growth of rev-
enues from excise duties, which increased by 33%
compared to 2006, forming 14% of total revenues in
2 See. Angelov, G., The Access to Financing of
Small and Medium Enterprises as the Main Accent in
Strategy “Europe 2020”, Financial Education and Scien-
tific Researches in Bulgarian Universities - Strategy “Eu-
rope 2020”: Scientific – Methodical Conference; Proceed-
ings – Svishtov, 9-10.November 2012 , Tsenov Academic
Publishing House, p. 297-303.
M. Pavlova
116
Економічний вісник Донбасу № 4(38), 2014
the Consolidated Fiscal Programme compared with
12% a year later1. Changes in the field of indirect tax
legislation, aimed at harmonization with the require-
ments of the EU, and the new Value Added Tax re-
gime, in terms of a high volume of import into the
country, were the basis of an increase in revenues from
this tax form by 13% year-over-year. Positive devel-
opment was also observed in revenues from social
security contributions which also increased by 13% for
the same period.
The presented positive changes in the structural
components of tax revenues were not only confirmed
in terms of customs duties and fees which registered 58
per cent reduction. The country membership in the EU
was the reason for the abolition of customs duties
among the member states of the Community and the
implementation of a common policy with regard to
third countries, adversely affecting the “customs duties
and fees” item of the Consolidated Fiscal Programme.
In 2008 – the year which marked the emergence
of the global financial crisis – budget revenue indica-
tors of the Republic of Bulgaria were positive: consoli-
dated revenues compared to the previous year in-
creased by 14%, tax revenues rose by 15 % and non-
tax revenues increased by 13 %. The negative growth
of 5% was observed only in regard of grants. The in-
crease in tax revenues was determined by several cir-
cumstances such as: the replacement of progressive
taxation with proportional one; a change in the burden
of social security contributions between the employee
and the employer from 35:65 to 40:60 and an increase
in excise rates.
Table 1
Consolidated fiscal revenues of the Republic of Bulgaria (in millions BGN)
Consolidated Fiscal
Programme
2006 2007 2008 2009 2010 2011 2012 2013
Tax revenues 16325.9 19 323.8 22 166.9 20 171.9 19 014.4 20 594.2 21 529.0 22 370.3
relative share 81% 80% 81% 81% 79% 81% 78% 77%
1.Taxes on profits 1 334.1 1 832.6 2 228.5 1 762.3 1 353.3 1 495.9 1 478.1 1 553.0
relative share 7% 8% 8% 7% 6% 6% 5% 5%
2.Income tax on individuals 1 324.6 1 808.7 1 971.5 2 051.1 2 031.2 2 179.6 2 297.7 2 348.5
relative share 7% 8% 7% 8% 8% 9% 8% 8%
3.Value Added Tax 5 823.8 6 598.5 7 485.3 6 432.5 6 267.1 6 611.7 7 151.9 7 366.5
relative share 29% 27% 27% 26% 26% 26% 26% 25%
4.Excise duties and road tax 2 498.0 3 315.4 4 051.6 3 844.5 3 567.9 3 860.1 4 047.8 4 055.8
relative share 12% 14% 15% 15% 15% 15% 15% 14%
5. Customs duties and fees 454.9 193.0 221.0 121.6 119.2 131.3 117.7 146.2
relative share 2.3% 0.8% 0.8% 0.5% 0.5% 0.5% 0.4% 0.5%
6.Social and health insurance
contributions
4 309.1 4 890.3 5 392.6 5 273.1 4 969.8 5 509.6 5 596.0 6 060.2
relative share 22% 20% 20% 21% 21% 22% 20% 21%
7.Other taxes 581.5 685.3 815.4 685.7 704.9 783.0 813.4 816.9
relative share 2.9% 2.8% 3.0% 2.7% 2.9% 3.1% 3.0% 2.8%
8. Tax on the production of
sugar
* * 1.0 1.0 1.0 1.5 1.0 1.0
relative share * * 0.004% 0.004% 0.004% 0.006% 0.004% 0.004%
9. Tax on insurance premi-
ums
* * 0.0 0.0 0.0 21.6 25.4 22.3
relative share * * * * * 0.09% 0.09% 0.08%
II. Non tax revenues 3 072.6 3 535.1 4 004.6 3 542.8 3 315.4 3 320.7 3 573.0 3 950.5
relative share 15% 15% 15% 14% 14% 13% 13% 14%
III. Grants 635.5 1 204.2 1 141.7 1 326.2 1 602.9 1 463.2 2 367.5 2 656.3
relative share 3% 5% 4% 5% 7% 6% 9% 9%
Total revenues and grants 20034.0 24063.0 27313.2 25040.9 23932.6 25378.1 27469.4 28977.2
Source: The Ministry of Finance/
_________________________________
1 Dimitrova, Т., Dimensions of Excise Policy in Bulgaria, Business Management, 24, № 4, Tsenov Academic Pub-
lishing House, 2014, p. 36-65.
M. Pavlova
117
Економічний вісник Донбасу № 4(38), 2014
One of the most important tax changes in 2008
concerned the taxation of individuals’ income by the
replacement of progressive taxation with proportional
one with an equal tax rate of 10% for all incomes, re-
gardless of their size, canceling the existing tax-free
threshold and the right to use tax relief for children.
The reform aimed an increase in the disposable mone-
tary fund of employees who received higher income,
respectively an increase in household savings1. The
new mechanism of taxation also had a positive effect
on the state treasury: revenues from the taxation of
individuals’ income in 2008 marked 9% growth com-
pared with 2007 and the cause of this was canceling the
existing tax-free threshold.
The positive effects of the reduction of the rate of
the corporative income tax were retained in 2008 with
a growth of 22 %. Revenues from taxation of excise
goods increased by the same percent as a result of in-
creased consumption and tax rates. The reduced social
security burden for employers (from 65:35 to 60:40 at
the expense of an employee) has stimulated higher
investment activity and labour demand, as a result the
revenues of social contributions reached 5.4 billion
BGN compared to 4.9 billion BGN in 2007. A positive
change also had revenues from customs duties and
fees, increasing by 14% to reach 221 million BGN in
2008.
Referring to the historical experience, the man-
agement of the state finances in times of economic
crisis is a task of significant difficulty, given the de-
layed or negative speed of economic development and
a limitation of the revenues from the ongoing distribu-
tion and redistribution processes. In other words, the
socio-economic situation affects the revenue part of the
state budget, and the Republic of Bulgaria is not an
exception in this regard. Although revenues and grants
under the consolidated fiscal program of the Republic
of Bulgaria for the period 2007-2013 increased by
20.4% (4.9 billion BGN), the dynamic analysis was an
evidence of irregular changes of an annual basis, the
leading cause of which was the negative effect of the
worldwide spread economic crisis. Its reflections were
observed especially in 2009 and 2010 when the
growth of total revenues during the last two years
(2007 and 2008) was followed by a two years de-
crease – 8% in 2009 and 4% in 2010 compared to the
previous year. The structural analysis of the revenue
part of the consolidated fiscal program has reflected the
cyclical changes and has corresponded to deteriorating
economic situation as a result of which there have been
some changes in the financial inflows and outflows of
the state. The limited business activity and deteriorat-
ing financial results adversely affected revenues from
1 See. Аdamov, V., Dimitrova, T. at al. Techniques
of Taxation, 7. Revised and expanded edition. Tsenov
Academic Publishing House, 2013, The “Education and
Science” research library, Book 60., p. 13-33.
taxes on profits – while in 2008 their nominal value
was 2.23 billion BGN, a year later they decreased by
21% (444.2 million BGN) to 1.76 billion BGN. The
negative tendency continued in 2009 when the change
in an annual basis was in larger size – 23% compared
to the previous year.
The interdependence among sectors in the nation-
al economy (the state, companies in the real sector,
financial intermediaries and households) explains the
changes in: the labour payment; the disposable income
of households and the limitation of their consumption;
the demand of loan resources and the effects on reve-
nues from the taxes on profits of individuals, the VAT
tax, the excise duties, social and insurance contribu-
tions2. The analysis of the above mentioned four tax
revenues (which formed 70% of revenues in the Con-
solidated Fiscal Programme) determined that in the
period 2009-2010 when the Bulgarian Economy was
suffering from the global economic crisis only the
revenues from the taxes on profits of individuals did
not record significant reductions and even in 2009 they
increased by 4% compared to 2008. This, at first
glance, is contrary to the economic logic and can be
explained by the reform of the tax system of the Re-
public of Bulgaria from 2008 in the field of the taxa-
tion of the individuals’ income which has replaced the
progressive tax scale with the proportional 10 percent
tax. The lack of opportunity for „more slightly” taxa-
tion of lower incomes, as a result of the abolition of
non-taxable income and other levels of combined tax
progression, adversely has influenced on the disposable
incomes of the households, but has influenced positive-
ly on the fisc. The evidence of this was the revenues
from the corresponding tax amounting to 2.05 billion
BGN and 2.03 billion in 2009 and 2010. The most
important source of revenues for the state treasury –
the Value Added Tax decreased to 1.05 billion BGN
(or by 15%) in 2009 compared to 2008, followed by a
new 3% reduction in 2010. Another representative of
the indirect taxation and the second most important
source of the financial resources for the state – excise
duties also decreased respectively 5% and 7% in 2009
and 2010. Social and health insurance contributions
decreased for this period totally by 423 million BGN
and on an annual basis the negative growth was 2% in
2009 and 6% in 2010. The other components of the
revenue side of the consolidated state budget (customs
2 See. Аdamov, V. Theory of Finance, The “Educa-
tion and Science” research library“, Book 100, Tsenov
Academic Publishing House, 2015, p. 17-37. and Mari-
nov, I., Factor Impacts on Consumer Lending in Bulgaria
// Financial Education and Scientific Researches in Bul-
garian Universities - Strategy “Europe 2020”: Scientific –
methodical conference; Proceedings – Svishtov, 9-
10.November 2012 , Tsenov Academic Publishing House,
p. 317-324.
M. Pavlova
118
Економічний вісник Донбасу № 4(38), 2014
Table 2
An annual change in revenues in the Consolidated Fiscal Programme of the Republic of Bulgaria
Consolidated Fiscal Programme 2007 2008 2009 2010 2011 2012 2013
I. Total revenues 20.1% 13.5% -8.3% -4.4% 6.0% 8.2% 5.5%
1.Tax revenues 18.4% 14.7% -9.0% -5.7% 8.3% 4.5% 3.9%
2. Taxes on profits 37.4% 21.6% -20.9% -23.2% 10.5% -1.2% 5.1%
3. Income tax on individuals 36.5% 9.0% 4.0% -1.0% 7.3% 5.4% 2.2%
4. Value Added Tax 13.3% 13.4% -14.1% -2.6% 5.5% 8.2% 3.0%
5. Excise duties and road tax 32.7% 22.2% -5.1% -7.2% 8.2% 4.9% 0.2%
6. Customs duties and fees -57.6% 14.5% -45.0% -2.0% 10.2% -10.4% 24.2%
7. Social and health insurance
contributions
13.5% 10.3% -2.2% -5.8% 10.9% 1.6% 8.3%
8. Other taxes 17.9% 19.0% -15.9% 2.8% 11.1% 3.9% 0.4%
9. Tax on the production of sugar * * 1.6% 0.0% 0.2% -28.3% 0.0%
10. Tax on insurance premiums * * * * * 17.9% -12.2%
II. Non tax revenues 15.1% 13.3% -11.5% -6.4% 0.2% 7.6% 10.6%
III. Grants 89.5% -5.2% 16.2% 20.9% -8.7% 61.8% 12.2%
Source: The Ministry of Finance/
duties and taxes, a tax on a sugar production, a tax on
insurance premiums) did not have a significant role on
the annual rate of change in total revenues given the
amount of the incoming financial resources.
The negative trend of lower own revenues in the
state treasury was overcome in 2011 with the adopted
new approaches for the management of state finances
in terms of delayed economic growth. Total revenues
and grants received in the consolidated budget in 2011
amounted to 25.38 billion BGN which was 33.7% of
the Gross Domestic Product (GDP) of the country.
Compared with the previous year the growth was 6
percent and the tax revenues were with the most signif-
icant contribution. A positive change was observed for
all structure components of tax revenues and especially
in the tax on sugar production (39%), income tax on
individuals (11%) and social and health insurance con-
tributions (11%). It should be pointed that conclusions
regarding the significance of separate tax forms in the
revenue side of the consolidated fiscal programme
would not be objective without taking into account
their nominal values. In this sense, the role of the indi-
cated growth of 39% in the tax on sugar production, for
instance, due to the nominal increase from 1 million
BGN in 2010 to 1.5 million BGN in 2011 was less
significant for the reported 6% growth of total revenues
compared with the Value Added Tax whose annual
growth rate was 5% (344.6 million BGN).
In 2011 the negative trend of growth compared to
the previous year had only revenues from grants (9%).
In 2012 such negative results were observed for: taxes
on profits (1%), customs duties and fees (10%) and the
tax on the production of sugar (28%). It should be not-
ed that, given the limited financial incomes from them,
the effect on total revenues was equal to the 9% de-
crease in grants in 2011. With regard to the other tax
revenues, changes have been in a positive direction and
it is necessary to highlight the following important
points:
• In 2012 compared to the previous year, there
were 5% more revenues from excise duties, mainly due
to an increased part of taxed tobacco products and
higher revenues from excise duties on fuel;
• The effect of slowdown in the economic activ-
ity could be seen mainly in revenues from income tax
on individuals which increased by 5% compared with
the 7% growth in 2011;
• Total revenues from taxes on profits during the
observed year decreased by 1% as a result of the inabil-
ity of the increased corporate tax revenues to compen-
sate the decline in contributions from tax on dividends,
liquidation shares and incomes of domestic and foreign
legal entities1.
In 2013, the ongoing process of gradual recovery
of the Bulgarian economy had a positive effect on the
development of budget revenues which for the third
consecutive year after 2011 recorded an annual growth,
in this case 5%. Indirect taxes (in particular the Value
Added Tax) and social and health insurance contribu-
tions had an essential role. They increased by respec-
tively 3% and 8% annually and formed 46% of total
revenues in budget. A growth was observed in taxes on
a profit – 5% compared to 2012 and unchanged were
revenues from excise duties, the tax on sugar produc-
tion and the item “other taxes”.
It is known that the presentation of budget indica-
tors in absolute amounts or their comparison with the
previous year measured values has its informative sig-
nificance. The current analysis would be incomplete
without presenting budget revenues in relative values
1 For more details see. The Economy of Bulgaria,
annual report of the Ministry of Finance, department
“Economic and Financial Policy”, 2007 and 2012.
M. Pavlova
119
Економічний вісник Донбасу № 4(38), 2014
compared to the leading indicator of economic activity
in the country, namely the Gross Domestic Product.
The data in Table 3 are indicative for the correlation
between the coefficient “Revenues on the consolidated
state budget (CSD)/GDP” and the cyclical develop-
ment of the national economy. At the beginning of the
studied period (2007) when the economic crisis was
still far from the boarders of Europe, total revenues of
the Consolidated Fiscal Programme amounted to 40%
of the GDP of the Republic of Bulgaria. Here we
should note that this was the year with the highest rec-
orded GDP growth on a chain basis of 15%. From
2008 to 2012 the indicator “Revenues on the consoli-
dated state budget (CSD)/GDP” annually declined
respectively with 2.8% and 2.7% in 2009 and 2010.
The reason for the situation in 2009 was the simultane-
ous decrease of the GDP by 1.4% compared to the 8
per cent drop in revenues of the Consolidated Fiscal
Programme. The economic growth in 2010, measured
by 3.2 per cent increase in the GDP, failed to compen-
sate the decrease in tax revenues, non-tax forms and
grants, and as a result the relative value of government
revenues compared to the GDP (coefficient “Revenues
on the consolidated state budget/GDP”) decreased by
2.7%. The proven negative trend was overcome in
2012 when the studied indicator increased by 1.5 per
cent in 2011, reflecting the started in the Bulgarian
Economy processes of gradual recovery from the re-
cession. The positive change in the coefficient contin-
ued in 2013 when the revenues and grants in the Con-
solidated Fiscal Programme were 37.1% of the GDP in
Bulgaria, compared with 35.2% in 2012.
Table 3
The dynamic of coefficient Revenues on the Consolidated State budget / the Gross
Domestic Product of the Republic of Bulgaria
Years: 2006 2007 2008 2009 2010 2011 2012 2013
GDP (million BGN) 51 783 60 185 69 295 68 322 70 511 75 308 78 089 78 115
Revenues on the Consolidated
State Budget (million BGN) 20 034 24 063 27 313 25 040 23 932 25 378 27 469 28 977
Coefficient
Revenues on the Consolidated
State budget / the GDP 40.8% 40.0% 39.4% 36.7% 33.9% 33.7% 35.2% 37.1%
Source: The Ministry of Finance/
The outlined trends in the structure and dynamics
of consolidated state revenues for the period 2007-
2013 responded to the socio-economic situation in the
Republic of Bulgaria and were an evidence of the de-
pendence of the revenue system of the country from
the cyclical development of the national economy. In
this regard, positive assessments have the country’s
accession to the EU and conducted under the re-
searched period fiscal harmonization and tax reforms.
As a result the cumulative growth of financial revenues
on the Consolidated Fiscal Programme for the re-
searched period was 41%. The structural analysis de-
termines the leading tax forms, placed at the base of
the expenditure system in the Republic of Bulgaria,
which are: indirect taxes in the form of value added tax
and excise duties, as well as the tax on individual’s
income and social and insurance contributions. The
adequate distribution of these (and all the other) state
financial revenues ensures the impact on all aspects of
the social reproduction process and the achievement of
the state economic and social aims.
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Policy, Ministry of Finance.
Павлова М. Податкова політика Республіки
Болгарія в 2007-2013 рр.
Бюджетна політика, що проводиться держа-
вою, має два виміри – урядові доходи і їх цілеспря-
моване розміщення відповідно до соціально-
економічної необхідності (урядові витрати) – ле-
жить в основі розвитку народного господарства.
Накопичення доходів достатніх державі для того,
щоб гарантувати її витрати – завдання першорядної
ваги, особливо в термінах макроекономічної не-
стійкості, коли урядове втручання істотне для своє-
часного подолання економічного спаду або кризи.
В цьому відношенні, аналіз митної сторони консо-
лідованої фінансової програми і оцінки тривалої
державної політики Республіки Болгарія за час
економічної кризи – поточні теми з науковим і
прикладним інтересом.
Ключові слова: податок, бюджетна політика,
держава, розвиток.
Павлова М. Налоговая политика Республи-
ки Болгария в 2007-2013 гг.
Бюджетная политика, проводимая государ-
ством, в нем два измерения – правительственные
доходы и их целенаправленное размещение в соот-
ветствии с социально-экономической необходимо-
стью (правительственные расходы) – лежит в осно-
ве развития народного хозяйства. Накопление до-
ходов достаточных государству для того, чтобы
гарантировать его расходы – задача первостепен-
ной
важности, особенно в терминах макроэкономиче-
ской неустойчивости, когда правительственное
вмешательство существенно для своевременного
преодоления экономического спада или кризиса. В
этом отношении, анализ таможенной стороны кон-
солидированной финансовой программы и оценки
продолжающейся государственной политики Рес-
публики Болгария за время экономического кризи-
са - текущие темы с научным и прикладным инте-
ресом.
Ключевые слова: налог, бюджетная политика,
государство, развитие.
Pavlova M. Tax Policy of the republic of bul-
garia for the Period 2007-2013
The fiscal policy, conducted by the state, in its
two dimensions – government revenues and their tar-
geted allocation in accordance with the socio-economic
needs (government expenditures) – is the basis of the
national economy development. The accumulation of
sufficient state’s revenues in order to ensure its ex-
penditures is a task of primary importance, especially
in terms of macroeconomic instability, when the gov-
ernment intervention is essential for the timely over-
coming of the economic recession or crisis. In this
regard, the analysis of the revenue side of the consoli-
dated fiscal program and the evaluation of ongoing
state policy of the Republic of Bulgaria in times of
economic crisis are current topics with scientific and
applied interest. In the study, the importance of the
separate tax forms for the state treasury is revealed,
tendencies and tax forms’ development through struc-
tural and dynamic analysis of the revenue part of the
consolidated fiscal program are outlined and the state
tax policy for the period 2007-2013 is estimated.
Keywords: tax, fiscal policy, state, development.
JEL: H23, H24, H61
Received by the editors: 16.11.2014
and final form 23.12.2014
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