Caselets on Public Procurement: An Attempt to Introspect

Abstract

The caselets attempt at inciting you to understand the nuances of public procurement and see what happens at the field level where they are being attempted in a very casual and ineffective way. Procurement in the public sector entails streamlining processes, reducing the prices and costs of raw material and finding better supply sources. India’s public procurement policy seeks to ensure transparency, equality and fairness and that public funds are not squandered or misused. The policy also addresses the issue of corruption and fraudulent practices. A gradual shift towards e-procurement has commenced and it is expected that a policy on the same would be adopted soon. Public procurement has a significant impact on our everyday lives as it plays a key role in the creation of both social and economic infrastructure like roads, schools, hospitals, provisions for drinking water and sanitation etc. Studies have shown that sectors like railways, defence, health, and telecommunication have allocated significant portions of their budgets to public procurement. In light also of the fact that public procurement system in India accounts for roughly 30% of the country’s GDP, the importance of having an ‘effective’ public procurement system can never be understated. In an ideal world, (public) procurement should mean acquisition of goods or services at the best possible cost, in the right quality and quantity, at the right time, in the right place and from the right source, for the ultimate benefit of the people at large. Of course, the world we live in is far from ideal and public procurement is also plagued by practical problems.