Finance and Credit
 

Evaluating the efficiency and effectiveness of State (municipal) procurement

Vol. 24, Iss. 3, MARCH 2018

Received: 31 January 2018

Received in revised form: 14 February 2018

Accepted: 28 February 2018

Available online: 29 March 2018

Subject Heading: MONETARY ACCOMMODATION

JEL Classification: Н57

Pages: 505—521

https://doi.org/10.24891/fc.24.3.505

Matveeva N.S. Academy of Labor and Social Relations, Moscow, Russian Federation
matveeva_nadejda@mail.ru

https://orcid.org/0000-0002-7747-1463

Subject The article reviews existing approaches to and methodology for evaluating the efficiency and effectiveness of State (municipal) procurement.
Objectives The purpose of the study is to perform a critical analysis and assess current approaches and methods to measure the efficiency and effectiveness of State (municipal) procurement in the system of public finance, and to build a single model to evaluate the performance of State (municipal) procurement.
Methods I apply general scientific methods, like analysis and synthesis, abstraction and generalization, and special methods, namely economic analysis, statistical and economic method, etc.
Results The study proves that there is no consistent approach to evaluating the public procurement performance, and establishes a list of indicators and their diversity (economy, efficiency, expediency, productivity, quality, etc.). The review of methodologies for assessing the efficiency of budget process, procurement monitoring and auditing prescribed by laws and regulations shows the lack of continuity in assessing the utilization of public finance to implement State (municipal) procurement to meet the demands of the State and municipalities.
Conclusions I demonstrate the need for creating a single methodology to ensure the evaluation of efficiency and effectiveness of procurement of goods, works and services at all stages of the procurement process. It will enable unbiased assessment and prevent a deterioration in public procurement performance.

Keywords: public finance, State procurement, municipal procurement, efficiency

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