Republic of Estonia: Technical Assistance Report-Public Investment Management Assessment
IMF Staff Country Reports, June 3, 2019
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- Republic of Estonia: Technical Assistance Report-Public Investment Management Assessment
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Bibliographic details
- Published: June 3, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498318235.002
Overview and purpose
- Publication date: June 3, 2019
- Objective: Assess the efficiency and effectiveness of Estonia’s public investment management and identify improvements from an already high level of performance.
- Scope: Whole public sector including central government, local governments, and state-owned enterprises.
Key findings on performance
- Public investment is a priority spending area for Estonia.
- Estonia’s public investment is characterized as relatively efficient.
- Investment implementation is particularly strong. This strength reflects:
- An open procurement framework that utilizes an advanced e-procurement system.
- A modern treasury that employs an effective Treasury Single Account system to guarantee cash availability.
- Asset monitoring made routine through full accrual accounting for the whole public sector.
- Active project management by ministries.
- Some effective practices currently in place are not yet formalized in institutional design and should be formalized to act as safeguards.
Gaps and risks identified
- Lack of a comprehensive, integrated portfolio view:
- It is difficult to obtain a picture of all-important investment projects pursued in the public sector including by local governments and state-owned enterprises.
- Absence of a comprehensive portfolio view hampers transparent prioritization across sectors and the identification of systemic patterns or risks.
Policy recommendations and priorities
- Formalize effective but informal practices in institutional design to provide safeguards.
- Manage public investment projects in an integrated portfolio at all stages of the investment cycle to:
- Support transparent prioritization across sectors.
- Identify systemic patterns or risks early.
- Improve visibility and coordination of investment projects across central government, local governments, and state-owned enterprises.
Subject tags and keywords (as provided)
- Subject: Budget planning and preparation, Capital spending, Expenditure, Public financial management (PFM), Public investment and public-private partnerships (PPP), Public investment spending
- Keywords: accounting data, annual budget, balance sheet, Budget planning and preparation, capital expenditure, Capital spending, CR, Global, ISCR, local government, Public investment and public-private partnerships (PPP), Public investment spending
Content in this bundle
- 1estea2019001