ACTUAL PROBLEMS OF ECONOMIC ACTIVITY OF COMMUNAL COMMERCIAL ENTERPRISES IN UKRAINE

УДК 346.1                                                                                                                                                             PDF

ORCID:0000-0003-4228-1368

DOI 10.37566/2707-6849-2020-2(31)-8

 

 

Vadym KOVERZNEV,

Dr. of Juridical Sciences, Senior Researcher, Institute of Economic and Legal Research Institute of the NAS of Ukraine, Kyiv, Ukraine

 

ACTUAL PROBLEMS OF ECONOMIC ACTIVITY OF COMMUNAL COMMERCIAL ENTERPRISES IN UKRAINE

 

In the article are accented attention on that the modern state of economy of Ukraine is in the crisis state.. In these conditions, there is an urgent need to save budget funds spent on ensuring the activities of public authorities and local governments, and the implementation of their powers. This problem is partially solved by the legislation on public procurement, which should serve as a means of economic growth in Ukraine.

In the foreign member states of the World Trade Organization Agreement, the participant of which Ukraine is, public procurement is used primarily to develop innovation and improve the quality of life; the most popular means of innovation in the European Union, which is not yet on the market, are pre-commercial procurement, which is carried out in order to research and develop new innovative solutions.

Unfortunately, in Ukraine such projects does not develop and public purchases are used exceptionally with the aim of budgetary cost effectiveness, during realization of purchases for satisfaction of current necessities of public and organs of local self-government authorities, that not in a complete measure answers their setting.

An analysis of the current legislation of Ukraine on public procurement provides grounds for the conclusion that it applies to all utilities without exception, including those created for commercial activities and profit in the interests of the local community.

However, proving the fact, that the economic activity of enterprise has exclusively commercial in nature and is not carried out at the expense of the budget, releases the municipal commercial enterprise from the obligation to comply with the public procurement procedure established by the Law of Ukraine “On Public Procurement” services.

The need for public procurement has a negative impact on the economic performance of utility companies, as in many cases it forces them to purchase cheap goods and services that do not meet the company’s requirements for functionality or quality.

Suchsituation reduces the interest in development of communal commercial enterprises and encourages owners to liquidate them, which creates the preconditions for the emergence of corrupt schemes to withdraw funds from local budgets.

With the aim of conditioning for effective realization by the business communal enterprises of economic activity in interests of local communities, the leadingout of these enterprises offers the author of the article from under the action of legislation of Ukraine about public purchases.

Key words: purchases for budgetary funds, public procurements, communal commercial enterprises.

 

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