Kosov M.E.Financial University under Government of Russian Federation, Moscow, Russian Federation kosovme@mail.ru ORCID id: not available
Subject Public procurement is a regulatory mechanism for addressing economic, socio-political issues nationwide. The public procurement mechanism respects interests of business, government and entire society as user of the ultimate result. The public procurement mechanism in Russia is developing, but its improvement requires to eliminate the existing impediments and barriers. Objectives The study identifies issues arising from public procurement as part of the Federal budget of the Russian Federation and suggests possible solutions. Methods The research analyzes the collected data and employs methods of comparison, formalization and specification. Results The article sets out options for addressing the public procurement issues in Russia. Conclusions and Relevance Unreasonable spending, unregulated procurement planning, abusive behavior of public procurement parties constitute key challenges of the public procurement processes from perspectives of customers. From contractors' perspectives, we should mention losses from interests paid to banks that finance contracts, untimely performance of contracts due to the customers' fault. Most solutions directly imply improvements to the regulatory framework. The findings can be used to solve public procurement issues of customers and contractors. This will eliminate barriers to the public procurement mechanism.
Keywords: budget, expenditure, public procurement
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