The annual budgets have grown steadily larger. The approved budget for
1973 called for revenues of 7,057 million leva and expenditures of 7,035
million leva. In 1970 actual revenues totaled 5,723 million leva, the
expenditures amounted to 5,650 million leva. Usually about 90 percent of
budgetary revenue has been derived from operations of the economy, and
the remainder has been raised through a variety of levies on the
population. The largest single item of revenue--more than 30 percent of
the total--has been collected in the form of a turnover tax on sales
that has been passed on to the ultimate consumer. The second most
important revenue source has consisted of levies on enterprises in the
form of a profits tax, a tax on fixed capital (interest charge) and
miscellaneous other deductions from income. Social security taxes based
on payrolls have been the third major source. Levied at a rate of 12.5
percent through 1972, the social security tax was raised by 20 percent
in 1973 in order to meet rising costs. In 1972 about four-fifths of the
turnover tax and two-thirds of the revenue from taxes on profits and
capital was to be derived from industry.
In December 1972 the BKP Central Committee plenum embarked upon a
gradual modification of the income tax system that would eventually lead
to a total abolition of income taxes for wage earners and collective
farmers by 1980. Initially, the existing system is to be improved by
introducing unified taxation for all blue- and white-collar workers and
collective farmers and by establishing a tax exemption equal to the
official minimum rate of pay. Gradual elimination of all income taxes
for these population groups in the 1976-80 period is to be synchronized
with the contemplated reform of wage scales. At the same time a system
of progressive taxation is to be introduced on incomes derived from
activities in the private sector that are not in conformity with the
amount of labor invested.
The most complete recent information on budgetary expenditures is
available from the approved budget for 1972. Out of a total outlay of
6,514 million leva, 3,224 million leva was earmarked for the national
economy, and 2,065 million leva was set aside for social and cultural
needs. The remaining undisclosed balance of 1,225 million leva, or 19
percent of the total outlays, must have included expenditures for
defense, internal security, and government administration. The social
and cultural expenditures included; social security payments, 1,054
million leva; education, 532 million leva; public health, 303 million
leva; culture and arts, 83 million leva; and science, 93 million leva,
in addition to 235 million leva to be provided by research organizations
and economic trusts.
Public-domain text, read in full here on John Shaqi.
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