PUBLIC PROCUREMENT EFFICIENCY DURING WARTIME: MECHANISMS FOR OPTIMIZING BUDGET EXPENDITURE

The article explores the features of public procurement within the public finance system of Ukraine. It analyzes the specific characteristics of public procurement practices in Ukraine and their alignment with EU requirements, as well as the factors influencing their effectiveness. The study examines the challenges faced by Ukraine in conducting tenders during wartime and identifies ways to overcome deficiencies in public procurement under current conditions.Following Russia's invasion of Ukraine in 2022, the country suffered substantial economic losses, necessitating significant budget savings. The 2022 budget was executed largely thanks to support from international partners, although many procurement processes were canceled due to the reallocation of funds for the purchase of weapons and military equipment. The issue of increasing the efficiency of public spending, particularly through improving tender procedures to minimize corruption, became more pressing than ever. In 2023, the situation with budget execution partially improved, allowing broader use of tender procedures, especially for the procurement of food and supplies for security forces. However, the level of corruption in these processes remained largely unchanged. This highlights the urgent need for reform of procurement legislation and improvements in the performance of public oversight institutions. Moreover, it is vital to strengthen public involvement in procurement processes at all levels, including for defense needs. The practice of 2022 showed that when public procurement bypassed the Prozorro system, prices for many goods, works, and services rose sharply compared to free market prices. This was particularly evident in the procurements by entities under the Ministry of Defense of Ukraine, which were often labeled as “classified.” Under pressure from civil society and international donors, the Ukrainian government was forced to partially open the Ministry’s procurement system to the public. However, this has not yet led to a significant improvement in efficiency. Therefore, the next step must involve a comprehensive revision of procurement legislation and maximum transparency of procurement data. Without such measures, Ukraine will not be able to attract substantial foreign investment for post-war reconstruction.