Published: 25 September 2023
Public procurement plays a pivotal role in the operational dynamics of governmental bodies worldwide. The term "public procurement" pertains to the acquisition, undertaken by governmental bodies and entities under state ownership, of goods, services, and construction endeavours utilising public funds. Countries around the world spend an average of 13% to 20% of GDP on public procurement and the cumulative expenditure committed to public procurement activities worldwide amounts to approximately 11 trillion USD. The Open Contracting Partnership and Spend Network estimated that in 2018, the total value of public procurement on a global scale might have been higher, hitting a whopping 13 trillion US dollars. Moreover, the size of government purchases is always underestimated or incorrect, as smaller or routine purchases are not included in the valuations, and defense purchases are left out of the purview due to security reasons.
Despite the calculation challenge, it is well-established that governments are the largest & influential buyers in their own economy as well as in the global arena. So, governments are expected to carry out public procurement efficiently and with high integrity to ensure quality of service delivery and to safeguard public interest. In addition, sustainable procurement practices are a priority target (target 12.7) of the SDGs to be achieved by 2030.
For details click the below links