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Tuesday, 07.05.2024, 16:36
Estonia's state procurement cost was history's biggest in 2014
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The cost of procurement contracts concluded by the Health Insurance Fund formed over a half of the total cost of the procurements, a report compiled by the Finance Ministry indicates.
In 2013, 8078 public procurements were held and the total cost of these procurements was about 1.6 billion euros. The major surge of the total cost was caused by the conclusion of large-scale and long-term contracts by the Health Insurance Fund, the actual payments of which are spread over several years.
Last year was exceptional because due to the treatment financing contracts concluded by the Health Insurance Fund, the share of state procurements of the gross domestic product (GDP) was 22%. Traditionally the ratio to GDP has been lower, in recent years around 12%. Throughout the European Union, the ratio is 17 to 20%.
According to the OECD, it is positive that the share of public procurements forms over 35% of total government expenditure in Estonia.
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