Public Spending Research Articles

Democracy and Public Finance in the Greek Cities

Summarizing several main points of the synthesis book published by this author in 2014, this article emphasizes the role of direct democracy in the management of finance in the Greek cities: powers of assemblies and councils, planning of public spending, supervision of the magistrates and the rendering of accounts, and organization of financial resources (regular revenue and occasional contributions by individuals). The financial system of the cities was admittedly imperfect, but it was better organized and more efficient than is often claimed; one of its essential characteristics was the commitment of wealthy citizens to politics and their financial contributions.

Keynote 1: Chris GidlowThinking about inclusion - learning from physical activity research and beyond

Abstract Certain individuals and population subgroups are ‘under-served’; not sufficiently included in society, health-enhancing opportunities or associated research to have the same chances of a healthy life as others. This presentation uses data from England to illustrate the reduction of public spending and worsening of the social determinants that has created conditions that exacerbate such exclusion and corresponding poor health outcomes. Specifically, learning will be shared from multiple disadvantage research, where people find themselves at the extreme margins of social disadvantage through a combination of traumatic and health-damaging life experiences (e.g., homelessness, substance misuse, mental health problems). Lessons with wider relevance to physical activity and other health promotion will be shared: the simultaneous exclusion from programmes and the research on which they are based; the critical role of lived experience to identify and understand the needs of those excluded; and applying Marmot’s concept of proportionate universalism to move from services/programmes that target equity, rather than equality, as a means of improving inclusion.

Impacto del gasto público en educación sobre el crecimiento económico en la región macro sur del Perú durante el periodo 2003-2021

The present research work aims to determine the impact of public spending on education on economic growth in the southern macro region of Peru during the period 2003 to 2021, covering the regions of Puno, Tacna, Arequipa, Moquegua, Apurímac, Cusco and Madre de Dios. The data used come from the statistical area of the Ministry of Economy and Finance, the National Institute of Statistics and Informatics and the Educational Quality Statistics of the Ministry of Education. The methodological approach adopted is hypothetical-deductive, non-experimental with a panel-type design; the estimation of the model was carried out using the Generalized Least Squares Feasible panel data technique which reveals significant quantitative relationships between the analysis variables. In general terms, the main findings indicate that a 1 % increase in public educational spending correlates with a 0.12 % increase in economic growth. Furthermore, when breaking down the impact of public spending by different levels of initial education - primary, secondary and higher - a 1 % increase generates an increase of 0.13 %, 0.14 % and 0.069 % respectively on economic growth. Furthermore, it is highlighted that investment in physical capital has a positive effect on economic growth. In conclusion, total public spending on education and spending by educational levels exhibit a positive and significant impact on economic growth, highlighting the strategic importance of government investment in education as a fundamental catalyst for economic growth.

An analysis of strategic goals and public procurement strategy regarding the implementation of The National Program for Land Registration in Romania

The National Program for Land Registration was supposed to be completed by 2023 with the registration of all administrative units in Romania. The aim of this study is to analyze the feasibility and acceptance of the strategic objectives of this project and the public procurement strategy in the view of three types of stakeholders involved in the project: private sector providers, cadastre academics and local cadastre offices directors. It is the first study that analyses The National Program for Land Registration from this perspective. The research shows that, in the view of the stakeholders questioned the strategic objectives were not feasible and they weren’t consulted in designing them, making the objectives unacceptable. In regards to the public procurement strategy, the results of the study show that the targets set were not clear, there is not enough competition in the market and the awarding criteria lack a balance between quality and price.

The Role of Financial Oversight in Enhancing the Efficiency of Public Spending in the Kingdom of Saudi Arabia

This study aimed to determine the extent of the impact of financial control on the efficiency of public spending in the Kingdom of Saudi Arabia to regulate corruption, reduce waste of public funds, enhance transparency, and assess the effectiveness of current financial control legislation and agencies, and the procedures included therein, to understand their responsiveness, efficiency, and their impact on diversifying income sources, reducing unemployment rates, and their effect on economic growth through the analysis and study of international and local reports and indicators regarding financial control. Additionally, this study reviews the most distinguished international experiences in financial control and how to benefit from them to enhance the efficiency of control over the implementation of the general budget in the Kingdom. This study adopts the descriptive-analytical approach to reveal the effectiveness of current financial control over the public budget in the Kingdom of Saudi Arabia, and its impact on the efficiency of spending, relying on three important indicators that represent the growth rate, unemployment rate, and diversification of income sources, through the review and analysis of international and local reports and indicators during the period covered by the Open Budget Index in the Kingdom, starting from 2008 to 2023. The study revealed the necessity of financially and administratively independent financial control agencies, granting them the necessary powers to carry out their tasks, making all administrative levels accountable, with the need for continuous updating of financial control legislation and laws in the Kingdom, activating what has recently been introduced of systems, working on integrating control agencies, in addition to the importance of exercising preventive control before preparing the budget to avoid budget deficit crises and preserve public funds. The researcher believes, through what has been discussed, that this study provides a valuable contribution to the development of financial control policies in the Kingdom of Saudi Arabia.

Public Procurement in Local Government: A Tool for Good Governance, Value Creation, and Sustainable Development

Worldwide, government adopts various methods and strategies for Good Governance (GG), Value Creation (VC) and Sustainable Development (SD) in public sector. One of such methods is Public Procurement (PP), a strategic instrument for public policy initiatives and a tool to stimulate GG, VC, SD, economic growth, and competitive markets. However, in Local Government (LG), PP process is often exposed to fraudulent activities, mistrust, non-competitive, non-transparent and non-accountable or politicized, these hampered GG, VC, and SD. It is against this background, that the study examined PP fundamental principles, mechanism for effective operation, essentials steps for LG PP process, and using fundamental principles as moderating variables in PP process to achieve GG, VC and SD. The study employed exploratory research design. Consequently, the study concluded that PP is a strategic tool to achieve GG, VC and SD in LG. Besides, the moderating variables of PP process in LG is not only prerequisite for GG, VC and SD but a means to guarantee integrity, fair pricing standard, trust, widening SMEs participation, and also to solve societal and climatic problems prevailing at the LG areas. Therefore, the study recommends that LG should have financial, administrative, and political autonomy to drive procurement policy for GG, VC, SD, and societal sustainability. Additionally, professionalizing and adoption of E-procurement in LG will ensure efficient service delivery and seamless procurement process. Furthermore, procurement officials should exhibit efficiency, transparency, accountability and probity in procurement process to avoid bureaucracy and corrupt practices pertinent to award of contract and payment.

GERENCIAMENTO DE RISCOS NO PLANEJAMENTO DAS LICITAÇÕES E CONTRATOS PÚBLICOS

Recent legislative changes in the area of public bidding and contracts, especially the guidelines implemented by Normative Instruction SEGES/MPDG Nº. 05/2017, established a new regime for contracting outsourced services in the Brazilian legal system. This new instrument aims to expand the dispute, in compliance with the principle of competitiveness, resulting in the expansion of the supplier market. IN Nº. 05/2017 establishes the rules and guidelines for the procedure for contracting services under the indirect execution regime within the scope of the Direct, autarchic and foundational Federal Public Administration. The regulation establishes innovative phases: Contracting Planning; Supplier Selection; and Contract Management. The Planning phase consists, according to the IN, of 3 stages: Preliminary Studies; Risk Management; and Terms of Reference or Basic Design. This paper aims to present a Risk Management Plan, developed in the planning phase of contracting a bidding process in the Electronic Auction for Price Registration modality. According to the PMBOK® Guide Sixth Edition p. 395, project risk management includes the processes of conducting planning, identification, analysis, response planning, implementation of responses and monitoring of risks in a project. The objective is to maximize exposure to positive events and minimize exposure to negative events. In this context, through causes, consequences, categories and SWOT analysis, 75 risks were identified. Risk management processes were used in accordance with the PMBOK® doctrine and the Pareto Principle to prioritize 25 risks.

Problems of integration processes between Ukraine and the EU

The paper examines the problems of integration processes between Ukraine and the EU. The purpose of the paper is to generalize the theoretical aspects of economic integration, to highlight the existing problems of economic integration of Ukraine in the EU. Changes in the economic and political vector of Ukraine's development have significantly affected internal processes in the country, economic integration means compliance by Ukraine with certain requirements that should help it integrate into the EU economic space in various directions. Economic integration has always been one of the key issues in foreign countries. Some states are constantly trying to create economic associations for the development of foreign economic activity. This is primarily related to issues of economic security of states. Implementation of the Association Agreement is associated with certain problems. Undoubtedly, the state of war makes adjustments to this process, but even before that, the business side expressed certain comments regarding the implementation of the Agreement. The results of expert surveys on the impact of the Association Agreement, assessments of the future impact of the Association Agreement, the main obstacles to export and import have been synthesized. The main problems in the implementation of sectors of the Association Agreement are highlighted: corruption and shadow economy, insufficient protection of intellectual property rights, violations in the field of public procurement, lack of real and effective measures to increase energy efficiency, lack of real ways to stimulate environmentally safe production, low social security of the population, incomplete use of regulatory mechanisms for stimulating innovative development.

Supplier Communication and Performance of Micro, Small and Medium Enterprises in Nairobi City County,Kenya

The study investigates the relationship between supplier communication and the performance of Micro, Small, and Medium Enterprises (MSMEs) in Nairobi City County, Kenya. Supplier communication was found to play a pivotal role in the operational efficiency and overall performance of MSMEs, especially in dynamic markets. Despite adopting Supplier Relationship Management (SRM) practices, many MSMEs continued to experience challenges such as poor record management, unclear expectations, and a lack of timely feedback. These communication issues contributed to delays, misunderstandings, and increased costs, which negatively impacted business growth. The study applied the Communication Accommodation Theory to explain how MSMEs adapted their communication styles in both high-context and low-context cultures. Using a cross-sectional research design, the study collected data from 373 MSMEs under the Access to Government Procurement Opportunities (AGPO) program. The results revealed a significant positive relationship between supplier communication and performance, with regression analysis showing that supplier communication explained 58.7% of the variance in MSME performance. The findings aligned with previous studies, emphasizing the importance of communication for successful supplier collaboration and supply chain management. The study concluded that frequent, transparent communication with suppliers improved product and service delivery and operational efficiency. Recommendations included investing in technologies that enhance communication and developing policies to support ongoing supplier relationship management. Further research could explore the impact of digital technologies on supplier communication and how communication with international suppliers influences MSME performance.

The Intersection Between E-Tax Administration, Sustainable Public Procurement and Sustainable Public Performance: A Review Conceptual Framework

Objective: This study centers on exploring, from the prisms of previous established studies, the influence of e-tax administration and sustainable public procurement on sustainable development and growth. This aims to find out how the employment and engagement of the intervention of e-taxation and sustainable public procurement could be harnessed to promote an overall sustainable development in a country, especially in an African context. It is on this note the study attempts to direct its focus, albeit partial, on the West African countries of Nigeria and Ghana. Theoretical framework: The study relies on the theories of Technology Acceptance Model, Stewardship Theory and Sustainable Development Theory. Technology Acceptance Model posits that technology usage promotes efficiency and transparency. By extension, e-taxation and sustainable public procurement will promote development since it relies on technology for its framework of operation. Method: This study engages a literature review approach, establishes empirical connections, and relates them with the current study. Also, theoretical cues were taken from established studies to explain the focus of the study. Result and conclusion: Following empirical and theoretical directions of previous studies, it is suggested that application of e-tax administration and sustainable public procurement frameworks could promote both social and economic development in a country, especially in Africa, Nigeria, and Ghana. Implication of the research: This study is significant in promoting the importance of sustainable framework in national growth and development. Apart from promoting sustainable development, e-taxation, and sustainable public procurement, when applied helps to curtail corruption and criminal leakages of resources which have been severally attributed to public management style in Africa. Also, the study brings to the fore the roadmap to justice, equitability and inclusion using the framework of e-taxation and sustainable public procurement. Originality/value: This study is distinct in the sense that it provides a pragmatic benefits of embracing sustainability approach, rather than eulogizing its intrinsic value alone. Sustainability intrinsic values include promoting inclusion and engendering environmental safety. However, this study goes further to showcase how sustainability in public procurement with the inoculation of e-taxation administration could stop corruption and abort resources leakages.

Additional public procurements in health services: Lessons from Finnish physiotherapy markets

Private providers are often acquired through public procurements to provide publicly financed health services. The number of contracted providers and their capacity often turns out to be deficient during the contract period. Typically, the purchasers then organize additional procurements or negotiate directly with available uncontracted providers to acquire more capacity. In this study, we examine an unusual additional public procurement in Finnish physiotherapy markets, in which incumbent providers with an existing contract were also eligible to participate. In practice, these contracted providers did not bear any risk when they submitted their bids in the additional procurement. We compare contracted and uncontracted providers’ prices to free market prices using a difference-in-differences approach. The results show that contracted providers increased their prices on average by 9%, while the originally uncontracted providers decreased their prices by 8% compared to the development of free market prices. Although this inefficient procurement led to a waste of public funds, a simple back-of-the-envelope calculation indicates that additional procurement can still be a more efficient way to increase capacity than directly contracting providers that were not contracted in the initial procurement.

The nexus between socio-demographic factors and participation of special groups in public procurement of works in local government authorities

The nexus between socio-demographic factors and participation of special groups in public procurement of works in local government authorities

Public Procurement Practices for Cereal Products in Polish Educational Institutions: Analysis and Implications for Nutrition Policy.

Public procurement of food is crucial for ensuring proper nutrition and the provision of high-quality products in public institutions like schools and kindergartens. It should be seen as an investment in health promotion, particularly for young children. Notably, when no quality criteria are specified, the cheapest and often lowest-quality products are typically selected. This study analyzed 1126 public procurement orders processed by schools and kindergartens in Poland between November 2022 and March 2023, with a focus on cereal products and their derivatives. Of these orders, 197 met the inclusion criteria, yielding a total of 5084 cereal products for detailed analysis. The study assessed the quantities ordered and the quality characteristics specified in the procurement documents. The results revealed that the most commonly described criteria pertained to product composition, especially typical characteristics and the absence of additives. Sensorial characteristics such as consistency and color were also frequently specified, while sustainable public procurement criteria were mentioned the least, indicating their marginal importance in current procurement practices. This underscores the critical importance of establishing minimum standards for describing cereal products in terms of sensorial characteristics, composition, and sustainability. Such standards are essential for improving the quality of grain products supplied to public institutions and ensuring that these institutions actively contribute to promoting healthy eating habits among children.

Hiding when you're not green: An empirical analysis on green public procurement

IMPACT This article highlights the significant influence of respondent bias on green public procurement (GPP) practices. After surveying the largest contracting authorities in the Czech and Slovak Republics, the authors found that non-respondents to GPP surveys typically adopt fewer green practices. This finding underscores the need for improved monitoring and institutional pressure to enhance GPP implementation. The article presents actionable insights for increasing GPP uptake which will be valuable for practitioners in public procurement, sustainability management and policy development. The authors advocate for tailored control and incentive mechanisms, emphasizing the importance of organizational performance monitoring. This article is particularly relevant for professionals in countries with developing GPP frameworks or those operating within imperfect institutional environments. By addressing these biases and enhancing monitoring, practitioners will be able to drive more effective and sustainable procurement practices.

The Impact of Multi-Currency System On Public Sector Procurement Performance in Zimbabwe

The purpose of the study was to examine the impact of multi-currency system on public sector procurement performance in Zimbabwe using evidence from government ministries of agriculture, defence and local government. In line with the positivism philosophical framework the study used correlational research design, deductive research approach, quantitative research methodology and a structured questionnaire to collect primary data from 171 participants comprising of procurement and finance officers in the three ministries. The study confirmed a statistically significant impact of multi-currency system on public sector procurement performance. All multi-currency system dimensions that include exchange rate fluctuations, foreign currency shortage and multiple currency usage induced inflation were found to significant positive predictors of both procurement cost and supplier price. Exchange rate fluctuations were confirmed to have the greatest positive impact on both procurement cost and supplier price in the public sector.

The study of problems and priority areas for improving procurement in health care

Public procurement in the healthcare system (HCS) is a key factor in ensuring the viability of medical institutions and the quality of medical and pharmaceutical care they provide. The problem of improving the public procurement system has not lost its relevance in recent years, but it is considered mainly in the theoretical and applied aspect. Sociological research (questionnaire) as an effective tool for collecting information allows to explore the opinion of professionals who directly procure essential medicines, medical devices (MDs) and other equipment on the problems that are associated with the procurement planning and conducting processes. It will also help to identify possible ways to improve the efficiency of procurement in the healthcare system, in particular under martial law. The purpose of the study is to investigate the state and problems of organizing centralized and decentralized public procurement of medicines and medical devices, as well as to identify priority areas for their improvement. The survey made it possible to determine the current state and key problems in the sector of medical procurement at different levels of healthcare provision. The survey showed that the most commonly procured medicines, medical devices, reagents, test systems, and medical equipment are the most frequently used. When forming a need, the majority of respondents (84.4%) operate flexibly, depending on the situation, 9.4% use the consumption method, and 6.2% use the incidence method. At the same time, 56.3% of respondents are based on available financial resources, 25% rely on the list of medicines. The survey made it possible to identify the problems that arise in public procurement. These are, first of all, restrictions on procurement according to the National List (56.3%), non-fulfillment/violation of contract terms (18.8%), and creation of artificial obstacles (12.5%). If necessary, procurement of medicines not included in the National List is guided by protocols, state or local formularies. According to the survey, 50% of respondents emphasize the creation of a single list, while 6.3% of respondents are strongly against it. The areas of improvement of the public procurement system proposed by the respondents relate primarily to the regulatory framework (simplification and systematization, stability of the regulatory framework, in particular, regulatory lists; raising thresholds and expanding procurement through the e-catalog; expanding the use of non-price criteria; improving the procedures for procurement of high-value equipment and innovative medical technologies.

PROSPECTS OF ECONOMIC INTEGRATION OF UKRAINE WITHIN THE FRAMEWORK OF THE ASSOCIATION AGREEMENT WITH THE EU

The article examines the prospects of economic integration within the framework of the association agreement with the EU. It is noted that modern studies on the integration of Ukraine into the EU most often consider the problems of the Ukrainian dimension of European and Euro-Atlantic integration, Ukraine's acquisition of the status of a candidate for EU membership in the conditions of the war in Ukraine , the state European integration policy of Ukraine: theory, methodology, mechanisms, reengineering in international business. The main prospects for further economic integration of Ukraine into the EU are offered: strengthen responsibility for corruption schemes in the economy and in the field of intellectual property rights; implement the Tax Policy Strategy, which should take into account all sectoral aspects of the Association Agreement with the EU; strengthen control over public procurement; apply real tools to stimulate energy efficiency and innovative development (tax credit or tax discount), environmentally safe production (emission limits, correction factors, etc.), establish a tax-free minimum income of citizens and apply real control over persons receiving tax benefits. It is justified that the level of innovative activity should be stimulated primarily by tax benefits. It is shown that in foreign countries, the emphasis is primarily on the financing of innovative research by private companies, which allows them to obtain an innovative product, which can then be sold both inside the country and outside its borders. In Ukraine, for the most part, the state is not interested in such processes and does not create certain preferences for persons developing innovative products. It is proposed to introduce an innovative tax credit, which will allow subjects of innovative activity to reduce the tax burden from corporate income tax or postpone its payment. Thanks to this approach, Ukraine can obtain innovative products that will be in demand on the world market.

The problems of adapting Antitrust Law to the digital economy

In connection with the Fifth Antimonopoly Package, the author analyzes the effectiveness of new competition law. The aim of the research is to identify the legal and economic consequences of including the term “network effect” and special legal structures for abuse of a dominant position in digital markets in Russian legislation. The study is based on Russian and foreign legislation, materials from judicial practice, and scientific research. The new rules make it possible for the existing legal regulation on the protection of competition to be applied to the phenomena of the digital economy. However, in the digital sectors, prohibiting the abuse of a dominant position contributes to strengthening the dominance of platform operators and the formation of a digital monopoly. This is not entirely consistent with the goals of antitrust regulation. With the consolidation in the provisions of Russian law of the principle of technological neutrality, as well as the design of a public contract, the strengthening of the dominance of platform operators may be restricted. A consequence of the lack of unified terminology in the Fifth Antimonopoly Package and legislation on digital platforms is the unreasonable limitation of the subject composition of the prohibition of abuse of a dominant position in digital markets. The Fifth Antimonopoly package applies to the activities of marketplaces and aggregators, but does not extend to digital ecosystems and digital services in the format of applications, cloud storage, social networks, search engines, streaming services, among others. This limitation will be overcome by applying the general rules on the prohibition of monopolistic activities and unfair competition to digital ecosystems and digital services. The author draws attention to a number of practical problems in applying dominance criteria to the activities of digital intermediaries, focusing on their business model. Conclusions are drawn about the advisability of expanding the subject composition of relations regulated by the new special rules of the Fifth Antimonopoly Package. Legal means are also proposed aimed at ensuring a balance of interests of the dominant digital platform operators and users.

Повышение эффективности выявления антиконкурентных соглашений в государственных закупках: анализ цифровых инструментов и международных лучших практик / Enhancing Efficiency in Detecting Anti-Competitive Agreements in State Procurement: An Analysis of Digital Tools and International Best Practices

Detection of violations of competition law in public procurement processes under existing electronic systems requires significant resources. This article examines the effectiveness of various international digital tools and platforms in simplifying data analysis of procurement processes and uncovering anti-competitive agreements. Within the framework of the article, a study of international experience was carried out, and innovative solutions in the field were highlighted. The study suggests integrating advanced digital tools into a new e-procurement system. The main recommendations are related to the introduction of an automated tool for detecting and proving possible anti-competitive agreements in the e-procurement system, which will enable the revelation of interconnections between economic entities by identifying the characteristics of agreements restricting competition, as well as calculating and managing possible risks. The proposed changes aim to improve the identification of connections between business entities, highlight suspicious activities by the latter, and provide a flexible and interoperable system for comprehensive data analysis. These changes are expected to promote competition and transparency in public procurement.

Public spending on defence, public order and safety in Spain and the European Union

Public spending on defence, public order and safety in Spain and the European Union