The implementation of principles of the budget process in the financing of public procurement in the digital economy

Abstract

Objective. Reveals the particularities of the implementation of the principles of the budget process as a basis for the protection of economic entities interests of in the financing of public procurement, as well as the legal and financial management of the contract system in the procurement (hereinafter – the contract system). The research methodology is represented by a complex of general scientific (systematic and structural, statistical, analysis and synthesis, abstraction) and private scientific (comparative legal, formal legal and content analysis of legal acts) methods. Conclusions: (1) the effectiveness of public spending is directly related to the efficiency of financing process of all public functions, including public procurements; (2) the results of norm-setting for public procurement are mainly aimed at the implementation of administrative functions, which do not affect and do not fully take into account the financial component of the process, providing public needs in goods, works or services; (3) additional financial expenses of public customers and participants of procurements, caused by transaction costs, invariably lead to price increase of received goods, works, services – and, exceeding real saving, don’t facilitate efficiency of use of budgetary funds; (4) the most important principles of the budget sphere for the budget process, ensuring the interests of economic entities in the financing of public procurement, are: effective spending of budget funds, planning, targeting and earmarking character, transparency and legality; (5) public procurement-making should be carried out in the conditions of determining the priorities, established by the state and affecting the reasonableness and effectiveness of budget expenses. Such priorities can be detected in documents, providing budget process, for example, in the forecast of socioeconomic development of a territory, which helps planning of budget for the next financial year. Recommendations. The analysis of the principles of budget process and the contract system provides the possibility to work out recommendations for the regulatory framework of additional principles in the budget legislation, making possible not only to ensure the most effective financing of the needs of the Russian Federation, but also to protect the legal interests of economic entities in the process of financing public procurements. Scientific and practical significance. The performed research develops the theory and practice of procurement financing, allows examining the experience of foreign countries in the implementation of budget spending on the needs of a state and the possibility of its implementation in the national practice of budget relations.