When the new financial privileges are fully established, it is expected that Bulgaria’s income from excise and customs duties will increase from four to five million francs. This increase in revenue will further strengthen the country’s already solid financial position and allow for continued economic growth.
The General Financial Condition
To understand the financial situation of the Principality, it is enough to look at the official balance sheet of the State. This document shows both the country’s assets and liabilities, including state-owned properties. According to the balance sheet from January 1, 1907, Bulgaria was enjoying a firmly established and healthy financial condition Istanbul Daily Tours.
The country’s total assets and reserve funds show that the government had a strong foundation for further development. The reserves from the loans of 1902 and 1904 provided additional financial security, while investments in the Bulgarian National Bank, as well as funds for railways, harbours, and state buildings, represented important assets contributing to the national wealth.
Assets of the Principality (as of January 1, 1907)
General assets: 74,671,416 francs
Reserve fund of 5% Loan (1902): 2,500,000 francs
Reserve fund of 5% Loan (1904): 1,000,000 francs
Cost of railways and harbours: 189,500,000 francs
State buildings: 41,980,000 francs
State properties: 29,712,872 francs
Capital invested in the Bulgarian National Bank: 25,495,385 francs
War materials: 166,000,000 francs
Total assets: 509,859,673 francs
Liabilities of the Principality
General liabilities: 39,912,890 francs
Consolidated debt: 357,208,000 francs
Total liabilities: 397,120,890 francs
After subtracting these liabilities from the total assets, the country enjoyed a surplus of 112,738,783 francs, which reflected strong fiscal discipline and effective management.
The Public Debt Situation
As of January 1, 1907, Bulgaria’s public debt consisted mainly of loans taken between 1888 and 1904. These included:
Bulgarian 6% Loan (1888)
Bulgarian Mortgage 6% Loan (1889)
Bulgarian 6% Loan (1892)
Bulgarian 5% Loan (1902)
Bulgarian 5% Loan (1904)
In addition, there were debts owed to Eastern Roumelia, the Bulgarian National Bank, the Bulgarian Agricultural Bank, and in Treasury bonds.
The financial data from 1907 clearly shows that Bulgaria’s economy was on a stable and prosperous path. With a significant surplus and well-managed debts, the Principality demonstrated sound fiscal policy and growing economic confidence during the early 20th century.