Development of interaction of structural elements of financial mechanism within state procurements system

Purpose: to consider the evolvement of relationships between the structural elements of the financial mechanism in the public procurement framework and estimate their qualitative change under the influence of financial and economic instruments from the point of view of increasing the efficiency of using financial resources in the context of a program-oriented approach to budget expenditure planning.

Methods: the research was conducted with the application of general and specific scientific methods, which include statistical analysis, analytical data processing methods, analogies, scientific generalizations, etc.

Results: based on the analysis of changes in legal framework the author of the research performed evaluation of the interaction of structural elements of financial mechanism on the stages of planning, supplier selection, performance of contract; there were analysed perspectives of its development through transformation of integrated use of instruments, and defined evaluation marks of procurement monitoring within the governmental programs. The research demonstrated that, as the result of state procurements made within the period from 2017 – early 2020, upon the modernization of tools applied in the system, there can be observed a qualitative enhancement in interconnection of structural elements, which means decrease in labour efforts and duration of procurement procedures, as well as higher level of transparency on different stages of the process.

Conclusions and Relevance: the analysis of legislative framework in state procurements segment and statistical data of the practice of their application demonstrates that the intensive reforming in state procurements segments is reasoned completely by the need to achieve the main foal of the public administration funding, which lies in the enhancement of effectiveness in the use of common financial resources. The fulfilment of the governmental order through the system of competitive procurements is aimed at the most complete satisfaction of the demands of all economic agents, including state, society, and population. The quality modernisation of tools applied on the state of procurement process provides an opportunity to lower the ordering customers’ labour efforts for elaboration of a schedule, diminish the terms envisaged for the planning, deciding on the supplier and performance of the contract. The switch to the electronic form of interaction among the participants, including the procurement documentation, reveals the opportunity to optimize the mechanism of financial control management and organization.

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