VULNERABILITIES IN ECONOMY ARISING FROM DEFICIENCIES IN PUBLIC PROCUREMENT

Abstract

Economy benefits from a powerful instrument for growth and development, namely public procurement; it can generate solutions to social and environmental challenges and contribute to the advancement of innovation. Public procurement plays a crucial role for both the public sector and the private sector, as its specific processes involve expenditures on goods, services, and works, enable investments, fostering employment. Integrity in public procurement is essential to fully benefit from the processes taking place within the economy. Otherwise, when public procurement is not conducted in compliance with legal procedures, lacking economic and social efficiency, and sound financial management, it generates vulnerabilities in economy. In practice, the primary objective is to assess whether effectiveness, and economy (‘value for money’) are achieved under conditions of integrity and accountability.The objective of this study is to assess the scope and scale of deficiencies and to focus on their reduction. The consequences of the identified deficiencies are reflected in the substantial extent of losses, additional revenues, and financial-accounting irregularities. The conclusion is that strengthening oversight in the field of public procurement in Romania can lead to a reduction of deficiencies in this area.

JEL Classification

D73, H11, H57

Keywords

fraud, corruption, public procurement

How to cite

MATEI, Adrian Ducu (2025). VULNERABILITIES IN ECONOMY ARISING FROM DEFICIENCIES IN PUBLIC PROCUREMENT. Journal of Financial Management and Economics, 13(1), 249-260. DOI: 10.65672/jfme.2025.1.23.

RePEc record

Handle: Repec:vls:rojfme:v:13:y:2025:i:1:p:249-260