Institutional Economic and Budgetary Mechanisms for Implementing Public-Private Partnerships

Abstract

The article examines the role of public–private partnership (PPP) in the country’s system of budget management and public investment. It substantiates that risks and macrofinancial instability significantly increase the requirements for prioritizing budget expenditures, combining short-term defense and social support needs with the preservation of strategic continuity in budget policy. It is shown that the budget process acquires significance not only as a mechanism for resource allocation, but also as an instrument for implementing state policy through the program-based approach, performance orientation, and transparency of management. The institutional, economic, and budgetary mechanisms for PPP implementation are analyzed, in particular within the framework of the budget program CPCPC 1201580, as well as the activities of the PPP Agency as a key institutional element in project preparation and support. The dynamics of the conclusion and implementation of PPP agreements and concession fee revenues to the state and local budgets during 2020–2024 are summarized. Special attention is paid to the reform of public investment management and the introduction of a single “entry point” for projects seeking budget financing or state support. Based on the analysis, strategies for budgetary management and institutional support of PPPs during the periods are systematized, and directions for improving the PPP mechanism are proposed. These include institutional strengthening of the PPP Agency, early screening and prioritization of projects, development of de-risking instruments, and a transition to results-oriented management. It is concluded that PPP should be viewed as a systemic mechanism for mobilizing private capital, reallocating risks, and enhancing the efficiency of budgetary expenditures in the process of recovery and modernization of the country’s economy.

Keywords: public–private partnership, budget management, public investment, fiscal risk management, de-risking, results-oriented management, transparency of the budget process, structural relationships