Budget spending on the allocation of government purchases was the theme of the session of the Council on work coordination of controlling bodies under the president of Dagestan. Magomedsalam Magomedov criticized officials for bulk purchases for unreasonably high prices, which is totally unnecessary: luxury cars, expensive equipment and so on.
The state as the main consumer of products and services forms a competitive market environment, as well as encourages development of small and medium-sized business by competitive choice. However, in Dagestan products and services are chosen by certain officials, who don't support the best producers, but their related companies. Tenders are held formally, but not all businessmen can participate in them due to artificial barriers.
It is obvious that limiting competition prevents the development of small business. Several public sales were cancelled as a result of the work of the control-financing department of the head of Dagestan.
“Often bulk purchase becomes an instrument of distribution of the budget. Expensive cars, furniture and equipment are purchased. At the same time revenues of municipal unities don’t surpass 8-10% of the annual budget,” Magomedsalam Magomedov said. He also gave examples of counter measures against corruption due to which budget money was saved.
“In public sales one and the same producers prevail. They are well known. I think it is not difficult to fight against it, as today e-sales have appeared. Moreover, we can monitor everything, which is happening. Most violations can be prevented at early stages,” the head of Dagestan said.
At the same time, according to the chairman of the Audit Chamber of Dagestan, Malkin Bagliyev, in 2010 the total volume of the budget spent for allocation of governmental and municipal buying was 23 billion rubles or 36% of spending of the consolidated budget.
