How Much Did the State Spend in 2018?
The state has negotiated 12% more as value, public procurement this year compared to the past.
The central and local authorities are obliged to spend their money transparently and for this purpose they publish their orders on a daily basis in the register of the same name.
According to the statistics of the Public Procurement Agency last year, the state has accelerated the spending of money to BGN 21.3 million per day. For comparison, in 2017, the amount was BGN 18.6 million and in 2016 was BGN 16.4 million. One of the main reasons for the increase in the spending was that the absorption of the EU funds started under the current programming period.
The total value of the public procurement contracts concluded exceeds BGN 7.8 million.
And this year, construction orders are at a lower value than the money that goes for supplies of different materials. For the construction the amount allocated is BGN 2 billion and 580 million.
However, the construction cost is expected to increase next year due to the more capital expenditures for the municipalities, as well as the expected increase in the absorption of EU projects in the area of water supply and sewerage and the construction of roads.
Typically, the companies with the highest number of public procurement contracts per year are the Electricity System Operator and the Maritsa East 2 TPP. For the first time, however, Sofia Municipality was replaced by the Municipality of Varna in the ranking.
The number of orders does not match the amounts that are being spent. One of the largest orders announced this year was released in the last hours of 2018 and worth BGN 2.2 billion. The competition is for the construction of a gas pipe, and the contracting authority - the state-owned Bulgartransgaz.
Judging by the state budget next year - the money spent will be more. The state has set a record number of spending with four priorities - income growth, education, defense and social policy. Wages in the budget sector will increase by 10 per cent, education by 20 per cent, and for defense and social policy also an increase in funds is foreseen. All of these amounts have to go through public procurement law to be spent.
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