The Impact Of Public Procurement Law To The System Of Public Finance

Public procurement law lays out the processes and procedures that public agencies, authorities, or departments should follow when procuring work or service using public funds. The law stipulates the threshold at which public entities should use public procurement instead of private procurement. Ef...

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Main Authors: RICHARD POSPISIL, PHILIPP KUNZ, ONDREJ KROCIL
Format: Article
Language:English
Published: Nicolae Titulescu University 2019-06-01
Series:Global Economic Observer
Subjects:
Online Access:http://www.globeco.ro/wp-content/uploads/vol/split/vol_7_no_1/geo_2019_vol7_no1_art_015.pdf
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author RICHARD POSPISIL
PHILIPP KUNZ
ONDREJ KROCIL
author_facet RICHARD POSPISIL
PHILIPP KUNZ
ONDREJ KROCIL
author_sort RICHARD POSPISIL
collection DOAJ
description Public procurement law lays out the processes and procedures that public agencies, authorities, or departments should follow when procuring work or service using public funds. The law stipulates the threshold at which public entities should use public procurement instead of private procurement. Effectively, public agencies spend a considerable amount of government revenue on public services. However, controversy exists on the relationship between government spending and private sector investment. It also remains unclear as to whether public procurement law improves financial management. Thus, the purpose of this study is to determine the relationship between public procurement law and the crowding-out effect, taxes, and finance. The study relies on quantitative research design where data was collected from a sample of 130 participants who comprised of public procurement officials, private investors, and the public. Using a questionnaire, the findings showed that public procurement law increases government spending that in turn crowds out the private sector instead of crowding-in. The need to fund projects often compels government to increase taxes and in turn incur budget deficits due to lack of adequate finances. However, public procurement laws enhance financial planning and control
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spelling doaj-art-6a3266ec017a4f208d692f4885f6c2c22025-08-20T03:03:15ZengNicolae Titulescu UniversityGlobal Economic Observer2343-97422343-97502019-06-0171127137The Impact Of Public Procurement Law To The System Of Public FinanceRICHARD POSPISIL0PHILIPP KUNZ1ONDREJ KROCIL2Associate Professor PhD, Faculty of Arts, Palacky University in Olomouc CZECH REPUBLIC richard.pospisil@upol.czLecturer PhD, Faculty of Business and Administration, Mendel University in Brno GERMANY p.kunz@yahoo.deLecturer PhD, Faculty of Arts, Palacky University in Olomouc CZECH REPUBLIC ondrej.krocil@upol.czPublic procurement law lays out the processes and procedures that public agencies, authorities, or departments should follow when procuring work or service using public funds. The law stipulates the threshold at which public entities should use public procurement instead of private procurement. Effectively, public agencies spend a considerable amount of government revenue on public services. However, controversy exists on the relationship between government spending and private sector investment. It also remains unclear as to whether public procurement law improves financial management. Thus, the purpose of this study is to determine the relationship between public procurement law and the crowding-out effect, taxes, and finance. The study relies on quantitative research design where data was collected from a sample of 130 participants who comprised of public procurement officials, private investors, and the public. Using a questionnaire, the findings showed that public procurement law increases government spending that in turn crowds out the private sector instead of crowding-in. The need to fund projects often compels government to increase taxes and in turn incur budget deficits due to lack of adequate finances. However, public procurement laws enhance financial planning and controlhttp://www.globeco.ro/wp-content/uploads/vol/split/vol_7_no_1/geo_2019_vol7_no1_art_015.pdfPublic procurement lawcrowding-out effectfinancial managementtaxation
spellingShingle RICHARD POSPISIL
PHILIPP KUNZ
ONDREJ KROCIL
The Impact Of Public Procurement Law To The System Of Public Finance
Global Economic Observer
Public procurement law
crowding-out effect
financial management
taxation
title The Impact Of Public Procurement Law To The System Of Public Finance
title_full The Impact Of Public Procurement Law To The System Of Public Finance
title_fullStr The Impact Of Public Procurement Law To The System Of Public Finance
title_full_unstemmed The Impact Of Public Procurement Law To The System Of Public Finance
title_short The Impact Of Public Procurement Law To The System Of Public Finance
title_sort impact of public procurement law to the system of public finance
topic Public procurement law
crowding-out effect
financial management
taxation
url http://www.globeco.ro/wp-content/uploads/vol/split/vol_7_no_1/geo_2019_vol7_no1_art_015.pdf
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