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Assessment of the Public Procurement Role in Public Sector Modernization in Russia

Assessment of the Public Procurement Role in Public Sector Modernization in Russia

Journal of Economic Regulation, , Vol. 7 (no. 1),

The impact of public procurement on the Russian economy is investigated in the paper. An assessment of the system’s effect on national competitiveness and the activities of small businesses is provided. Public contract system is a versatile tool that can be used to control a wide variety of economic sectors. Every year, the share of public sector in the Russian economy is increasing, that means the state influence on economic processes taking place in the country is growing steadily. First of all the importance of public procurement in the Russian economy can be estimated by matching parameters of the budgetary system and GDP.
The interrelationship of public procurement and national competitiveness is identified in the paper based on the consideration of measures to ensure energy efficiency and national treatment. Efficient spending of budget funds, as stated in the objectives of the contract system, is analyzed by the indicator of the savings in absolute and relative terms. Indicators of system openness, which will improve the monitoring of its transparency, are given to determine the effect on the economy of corruption component of public procurement.

Keywords: contract system; public procurement; small businesses, national competitiveness; the effectiveness of budget spending; transparency.

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