Chapter managing and monitoring budget implementation 1 A. Budgetary accounting

3.

Procurement administration

In some countries, the purchasing function is centralized in a central procurement

unit. In principle, a central purchasing unit has the advantage of allowing the government

to obtain lower prices by grouping its purchases. However, the results may be

disappointing because of problems such as slow and bureaucratic response to

customers, excessive inventories, losses, pilferage, and slow response to market and

technological changes.

It seems preferable to make line ministries fully responsible for their purchases

and establish a Central Public Procurement Office to supervise and assist in the

procurement activities of agencies. Under such arrangements, the Central Public

Procurement Office is responsible for developing rules and regulations, creating a

government-wide information and publication system, ensuring that government

purchasing entities employ trained personnel, developing a training system, and

maintaining general supervision of procurement systems.

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