Economic Aspects of the Acquisition in Defence Department

This essay depicts he alternative approach to investments in public sector. Author expresses his belief on evaluating and rating investments in public sector in the same way as in private sector. The simple theoretical analysis and foreign experiences give enough evidence about feasibility of such approach even in defence sector. Nowadays, in governments across the world, public-sector financial systems are being transformed more fundamentally than at any time in decades. The changes are taking place to respond to a number of deficiencies of government accounting and financial-management system. Foreign experience has proved that a system of output appropriation provides a workable alternative to the traditional input-based system and can yield substantial advantages for both departmental management and government decision makers.

This essay depicts he alternative approach to investments in public sector. Author expresses his belief on evaluating and rating investments in public sector in the same way as in private sector. The simple theoretical analysis and foreign experiences give enough evidence about feasibility of such approach even in defence sector. Nowadays, in governments across the world, public-sector financial systems are being transformed more fundamentally than at any time in decades. The changes are taking place to respond to a number of deficiencies of government accounting and financial-management system. Foreign experience has proved that a system of output appropriation provides a workable alternative to the traditional input-based system and can yield substantial advantages for both departmental management and government decision makers.

Keywords: economic management,acquisition,ministry of defence,public sector,process management