Public Procurement as an Economic Policy Tool

Abstract

The paper provides the rationale for using the public contractual system of the Russian Federation as a mechanism of a proactive economic policy. A number of works are analyzed that consider expenditure stimulation through a public contractual system as the main regulatory tool, for instance, in building national innovative systems, advancing research and technology, modeling the structure of the economy as well as solving social problems. An empirical analysis of the role of the Russian contractual system is given in view of its impact upon development of the regional economies in 2012–2019. Regular significant relations between the scope of financing public procurement within the contractual system of the Russian Federation and adequate own funds in the regional budgets are confirmed. The trends in elasticity coefficients characterizing correlations between the scope of financing of public and municipal procurement within the Russian public contractual system and particular tax groups in consolidated budgets of the subjects of the Russian Federation in 2012–2019 indicate economic appropriateness of increased procurement costs in terms of simultaneously providing own funds to the budgets. A positive influence of public and municipal procurement upon the level of employment and innovative activity of entities is shown, verifying, therefore, the potential of the Russian contractual system to support social and innovative policy, which is consistent with international evaluations. Conclusions are reached on the expediency of employing the budget and contractual system cumulatively as a proactive mechanism of economic policy to achieve efficient economic orders.