Public procurement and public finances in Ukraine

Abstract

The public procurement system is a key element of the state’s economic policy, aimed at the efficient use of budget funds, ensuring transparency of expenses, and stimulating economic development. At the same time, the effectiveness of this system directly depends on the level of competition, transparency of processes, accessibility for businesses, and the quality of contract execution control. The purpose of the study was to analyze the current state of public procurement in Ukraine, identify the main problems, assess the dynamics of changes in this area, and develop recommendations for improving procurement management mechanisms to enhance their effectiveness. Methods. The research methods included the analysis of statistical data on the volumes of public procurement, their distribution across economic sectors, as well as the evaluation of the level of competition in tendering processes. A comparative analysis of Ukraine’s regulatory and legal framework and international practices was used, which allowed identifying the strengths and weaknesses of the national public procurement system. To assess the dynamics of changes, data from 2020 to 2024 was analyzed, including trends in the growth of total procurement volumes, the number of tenders, and signed contracts. The results of the study indicate a positive development trend in the public procurement system, manifested in the increase of the total procurement volume, a higher level of competition, and expanded opportunities for small and medium-sized businesses. The implementation of electronic platforms significantly reduced the level of bureaucratization in the process, ensured greater transparency, and simplified access for economic entities to participate in tenders. The analysis of procurement distribution across economic sectors indicated that infrastructure projects account for the largest share (26.4% of total procurement volume), which confirms the strategic importance of investments in the development of transport and municipal infrastructure. Education and healthcare also remain priority areas; however, their share in the total procurement volume has slightly decreased compared to previous years, which may indicate a shift in government policy priorities. Conclusions. Public procurement reforms have a significant impact on the country’s economic stability, as they allow for rational allocation of budget funds, minimize corruption risks, and create a favorable business environment. At the same time, to increase the efficiency of the system, it is necessary to ensure further development of contract performance control mechanisms, involve effective monitoring tools, and improve the legislative framework.