Public procurement is very important for every economy because it represents a major financial asset for the country. The emphasis is on spending public funds or managing public spending. Nowadays, market competition is so large that smaller businesses are in an unmanageable position. Likewise, large companies are so strong that smaller businesses can not come to terms. Public procurement enables competition and spending of public funds under equal conditions for all participants. The public procurement system must be effective, which is very important for achieving the goals of the free market and ensuring the conditions of competition. In this paper, in its first part, the general or basic terms of public procurement are defined, the main objectives of the public procurement are described, the legislative and institutional framework of public procurement as well as the subject of public procurement, which includes goods, services and works determined by its type, its properties and its purpose. The second part of the work is oriented towards public procurement and public procurement and procurement procedures. This paper seeks to show the importance of public procurement for the country, legal entities and economic entities, which ultimately reflects a better and fairer system of financial management and control in the public sector.