Importance The article studies the performance of public and municipal institutions in food by using the contract system. The Kostroma oblast is a case study. Objectives The purpose of the paper is to analyze the use of funds to purchase food for the public use of the Kostroma oblast in order to identify possible changes aimed at saving the budget. Methods The data of electronic auctions, information and analytical agencies, as well as the statistical information on procurement of food commodities in the Kostroma oblast served as an information basis for the study. Results We identified certain problems, the solution of which will help to optimize the procurement and redirect the saved resources in other areas requiring attention. We substantiate the necessity of improvement of the contract system in order to improve the use of budgetary funds. We performed an in-depth analysis of the results to place orders. Conclusions and Relevance We conclude that the fund spending under the contract system is by no means effective. To monitor the use of the budget funds, we propose certain guidelines for saving and optimization of the contract system. The results of the study will be useful to improve the contract system and conduct a similar analysis for other constituent entities of the Russian Federation or the country, as a whole.
Keywords: foodstuff, contract system, government procurement, market price, budget funds
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