Glamor Economics

Chapter 98

Chapter 13 Section 8 A New Type of Public Service——Government Purchase

"Government purchase", as a new way of government providing public services, has attracted the attention of all sectors of society in recent years. The "Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning the Construction of a Socialist Harmonious Society" stated: "The government promotes the separation of administration and administration, supports social organizations to participate in social management and public services, strengthens market supervision, and rectifies and standardizes the order of the market economy." The Party Central Committee requires all Establish interconnected, complementary, and interactive social organizations to participate in social management and public services between governments at all levels and social organizations, and jointly build a public service system.The public services purchased by the government from social organizations are an effective form for the government to establish a social management network and a link between the government and social organizations.

There are roughly two types of government purchases: the purchase of labor services from residents; and the purchase of goods from enterprises or companies.Therefore, this public expenditure includes the payment of salaries of staff and armed personnel and the purchase of various public goods.However, various transfer payments cannot be included in the government purchase project, because it is not the money spent by the government to purchase current goods and services.The government combines these purchases with the labor it employs to produce a wide variety of public goods (public education, policing and fire protection, national defense, etc.).

For a long time, public undertakings have been mainly run directly by the government, leading to redundant construction of institutions, resulting in low efficiency and waste of financial funds.Under the current background of implementing the scientific outlook on development and building a harmonious socialist society, there are many ways for the government to perform public service functions, and purchasing services is an innovative way.

In a sense, there is no fundamental difference between government procurement and government procurement.Government purchase means that the government entrusts qualified social organizations to complete the matters that were originally directly organized by the government and provide services for social development and people's lives, and evaluates according to certain standards based on the quantity and quality of services provided by social organizations Pay for the service later.Government procurement refers to the behavior of state organs at all levels, units implementing budgetary management, and social groups using financial funds such as budgetary funds and extra-budgetary funds to purchase, lease, entrust, or hire goods, projects, and services.Purchasing some necessary equipment to maintain the normal operation of the organization is what we usually understand as government procurement, but in order to perform its functions, the government must raise funds in the form of taxation, etc., and then use these funds to purchase public products and services needed by the general public , is also one of the contents of government procurement.Therefore, government purchase is only a form of government procurement.

In my country, the "Government Procurement Law", which came into force on January 2003, 1, defines "government procurement" as follows: government procurement refers to the use of financial funds by state agencies, institutions and organizations to purchase goods, projects and The act of serving.Here, it is clearly pointed out that government procurement not only purchases goods, but also purchases services, and government procurement is an important part of public finance.

According to the agreement of WTO, after 2007, my country will join the negotiation of "Government Procurement Agreement".The agreement defines the coverage of government procurement more broadly, including all government departments, public organizations and public institutions, as well as some non-profit state-owned enterprises' procurement of goods, engineering and service items.It can be seen that with the further expansion of economic opening, my country's government procurement management will become more and more standardized.

[links to related words]

Public undertakings are the undertakings of the whole society or the whole public in the society. They are things related to the basic life of the public and provide specific public products to the public.

The multiplier of government purchase expenditure refers to the multiple relationship between the change in national income and the change in initial government purchase expenditure that causes this change, or the ratio of the change in national income to the change in initial government purchase expenditure that causes this change .

(End of this chapter)