UNITED STATES DEPARTMENT OF COMMERCE SUPPLEMENT TO COMMERCE Published by the BUREAU OF FOREIGN AND DOMESTIC COMMERCE TRADE INFORMATION BULLETIN-No. 201 The following pages contain an exposition of the fiscal system of the Bolivian Government, with special reference to its revenues and expenditures, the details of taxation, and the application of revenues to the Government's obligations. This bulletin should be read in company with two others that are being issued by this bureau, dealing respectively with the Bolivian public debt and the system of currency, exchange, and banking. All are the product of studies made by Charles A. McQueen, special agent of this bureau. JULIUS KLEIN, Director. (II) THE BOLIVIAN FISCAL SYSTEM: REVENUE, EX PENDITURE, AND TAXATION. n S THE FINANCIAL SYSTEM. Bolivia's fiscal system is governed by an organic law of November 21, 1872 (Ley Orgánica de Presupuesto y Administración Fiscal), by whose provisions the public income, which formerly had been collected and administered exclusively by the central Government, was divided among the national treasury and the treasuries of the several Departments and municipalities. This law was modified by that of October 24, 1913. National revenues are described as those derived from import duties, seigniorage, stamped paper and revenue stamps, the duties paid on the exportation of silver and other minerals, the sale and operation of Government lands and services, etc. Departmental revenues are of local character, including the annual tax paid by the d Indians, assessments upon rural property, consumption taxes upon various commodities, special charges for road maintenance, etc. The municipalities derive their income largely from business licenses (patentes), taxes upon urban property, market fees, and various other charges upon local business and services. In practice it has of been difficult to maintain clear distinction as to jurisdiction over certain forms of assessment, and relations between the nationa land local revenues are not so well defined as they will become with the increase of population as time goes on. This subject is treated more fully in a subsequent section on departmental and municipal finances The fundamental factor in the public finances is the annual budget law, which prescribes the national and departmental expenditures, on the basis of a computation of the revenue expected from the various duties, taxes, and imposts created by special legislation, and the yield from national services and property. The Executive presents the proposed budget for the consideration of Congress when the latter meets, on August 6 of each year. When ratified by both houses (Deputies and Senate), the law is duly promulgated and rules for the succeeding calendar year, which is also the fiscal period. According to the organic law, the budget must balance. Unforeseen expenses must be provided for by special items duly included in the budget, and any special expenditure not contemplated in the budget as presented to Congress must be voted upon and passed as a special law simultaneously with the budget. Such special expenditures must indicate the source of the funds available for their execution. Any excess over budgeted items of expenditure necessary for the prescribed purpose can only be authorized by the Council of State and must be taken from the amounts allotted to unforeseen expenses, while any surplus that may result from any fiscal year is to be applied to the expenditures of the following year. According to the intent of the law, therefore, the budget is so constructed as to cover completely the financial requirements of the year, and to pre |