Improving the financing of state and municipal contracts

Since the second half of the twentieth century, all states, regardless of the level of socio-economic development, have been actively involved in economic activity in the markets of goods and services. Government bodies take the most active part in the areas and industries related to the most critical areas and products, the level of provision of which allows solving many problems of ensuring socio-economic stability in the country. The gigantic scale of public procurement and the insufficient level of qualification of civil servants engaged in the preparation and their (public contracts) support leads to large-scale financial and administrative violations, and, consequently, to corruption. The current regulations in the field of regulation of public procurement provide for financial mechanisms for guarantees of execution of public contracts through depositing financial resources of executing enterprises in a special account or providing guarantees of financial institutions, which reduces the economic efficiency of their (contracts) implementation. Thus, regulations require insurance of budget risks in the preparation and implementation of public contracts. The requirement to insure contracts for the implementation of public contracts is fair, but requires the attraction of additional financial resources of enterprises, which do not always have them. As an alternative to freezing the financial resources of enterprises, the mechanism of issuing government bonds by government bodies that order the supply of products for state and municipal needs can be used.