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FINANCING AND EFFICIENCY OF STATE AND MUNICIPAL PROCUREMENTS

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PDF: Author(s): Buryak E. A., Namitulina A. Z., Soklakova I. V., Surat V. I.,
Number of journal: 1(50) Date: February 2020
Annotation:

The article examines procurement as an important factor of the economics development since the state (municipal) order forms demand for certain product, production is expanding, and unemployment is reduced. Additionally, small and medium-sized businesses are involved in procurement, which provides support for business. Satisfaction of the state demands ensures the country defense and security, stable socio-economic and cultural development, supports the vital activity of the population, solves political and administrative tasks, and forms the state material reserves. Currently, there is an acute question of saving state and municipal budgets. Procurement to meet state needs accounts for about a third of the budget funds, which indicates the relevance of this problem and the need to find ways to reduce the costs. One of such methods was the contract system, the main principles of which are: openness, transparency of procedures, stimulation of competition and innovation, justification of costs, responsibility, customer competence, unity of the system. State needs are related to ensuring the country security and defense, the livelihoods of the population, the solution of socioeconomic, cultural, political, and administrative tasks, as well as creation and support of the state material reserves. The magnitude of state needs is influenced by the factors of expanded reproduction and the amount of free state financial resources. The structure and scope of the state needs are determined by the relevant state authorities, and the goals are formed that must be achieved through public procurement. The expenditures of municipalities are spent on such important regional goals as: development of infrastructure, science and technology, construction, etc. Thus, public procurement is one of the main items of public spending, which is also a factor in sustainable development of the economy. Financing procurement of goods, services and work for the state and municipal needs in the federal budget takes about a third of the funds.

Keywords:

budgeting, public procurement, government order, borrowing, effectiveness of state and municipal procurement, financing, state budget, state defense order, municipal expenditures, state reserves.

For citation:

Namitulina A. Z., Soklakova I. V., Surat V. I., Buryak E. A. Financing and efficiency of state and municipal procurementse. Business. Education. Law, 2020, no. 1, pp. 164–169. DOI: 10.25683/VOLBI.2020.50.117.