Press release: Estonia may fall irreversibly behind in the field of IT

Toomas Mattson | 7/27/2005 | 12:00 AM

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TALLINN, 27 July 2005 - The State Audit Office finds that insufficient coordination of information technology impedes the development of the information society in Estonia. The situation requires urgent and adequate attendance. Otherwise Estonia's level of development may fall irreversibly behind that of the developed countries.

The audit pointed out that there is no uniform coordination of the IT field of the public sector even at the level of state authorities, not to mention comprehensive development of the information society on a broader scale. There is no state budgeting mechanism, which would ensure the balanced and sustainable financing of the IT infrastructure of the public sector and comprehensive treatment of the information society.

The disagreements between the Ministry of Finance and the Ministry of Economic Affairs and Communications over the methods of coordination and financing of the development of the state's information technology impede the planning and financing of the information society target programmes and evaluation of the costs incurred in the field and their effectiveness.

In the audit report the State Audit Office finds that the state does not have an overview of the actual IT expenses and it is also not certain that the money allocated to the IT field is used in the best possible manner. Currently, the main problem upon developing the IT field in the public sector is not the lack of resources, but the expedience of using them. The State Audit Office is not convinced that the state's allocations for information systems will be used according to their intended purpose, in a sustainable and the best possible manner.

The IT costs have amounted to approx. 1% of the state budget over the previous years (excl. of the costs on the IT personnel). By inclusion of the IT costs in the ministry budget limits its share decreased significantly through 2000-2001.

Reorganisations upon management of the state's IT field brought about a standstill in the development of the state's information systems and as from 2003 it has been deepened by the lag in harmonisation of the procedure for planning the IT costs with the new principles of state budgeting and supervision.

Application of information technology and development of information systems in public administration needs stable financing. On the basis of the experience of many countries it can be claimed that the required minimum IT financing is 1% of the state budget expenses in the financial year. To ensure sustainable operation of the state's information systems the State Audit Office recommends that this be fixed in the state's budget strategy.

The problem is that the development of information systems is not considered a supra-ministerial activity. Little attention is paid to the development and sustainable operation of the state's information system as a whole. The Ministries, except the Ministry of Economic Affairs and Communications, do not treat the development of the information systems as a supra-ministerial field of activity, i.e. as a field where the interests of the state as a whole have supremacy over the interests of the Ministries.

The Ministries focus on achieving the planned results in their own areas of responsibility; they care about information technology only as much as it supports the achievement of the main objectives of the particular Ministry. The Government of the Republic Act does not stipulate that any Ministry, not even the Ministry of Economic Affairs and Communications, would be liable for comprehensive development of the field.


Toomas Mattson
Communication Manager of National Audit Office
Telephone: 6400 777
Mob: 51 34900
E-mail: [email protected]

  • Posted: 7/27/2005 12:00 AM
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