Use of budget funds through the public procurement system in Ukraine: challenges and prospects

Abstract

The article analyzes the public procurement system in Ukraine, in particular through the electronic platform ProZorro. It examines the problems that reduce the efficiency of the system, in particular the excessive use of non-competitive procedures, which creates opportunities for abuse and inefficient use of budget funds. Particular attention is paid to the difficulties of monitoring and controlling the implementation of contracts at the local level.

The paper also examines the challenges faced by the procurement system in the context of war and the country’s reconstruction, in particular the need to respond quickly to emergency needs without conducting open tenders. This allows for rapid procurement, but also creates risks of violations and abuses.

A number of areas for improvement are proposed, including revising the thresholds for the use of electronic procedures, strengthening control over corruption risks, introducing non-price criteria for procurement, and adapting the system to new economic realities. It also examines the problems associated with insufficient control at the local level, where difficulties often arise in monitoring and controlling the implementation of contracts. A particularly important aspect is the analysis of new challenges that have arisen for the procurement system in wartime, when there is a need to respond promptly to urgent needs without conducting open tenders, which allows for quick procurement, but also increases the risks of corruption and abuse. The paper proposes a comprehensive approach to addressing these problems, including improving the regulatory framework, revising the criteria for selecting procurement winners, and expanding the use of non-price parameters for evaluating suppliers, which will increase the efficiency of procurement and ensure better quality of purchased goods and services. It is noted that reforming the regulatory framework and improving control mechanisms are critical to ensuring the effective and fair use of budgetary resources, particularly in the context of the country's post-war recovery.