IMF国际货币组织全球-Republic-of-Estonia_Technical-Assistance-Report_63页_1mb

Summary of the Public Investment Management Assessment of the Republic of Estonia

Core Content

This report is a Public Investment Management Assessment (PIMA) conducted by the International Monetary Fund (IMF) in 2018, as requested by the Ministry of Finance (MoF) of Estonia. It evaluates Estonia's public investment management framework using the IMF's PIMA methodology and provides recommendations for further strengthening the system.

Estonia is known for its strong fiscal performance and a high level of public investment, which has contributed to economic growth and development. The report highlights that Estonia's public investment has consistently exceeded 8% of total general government expenditure, and its capital stock has been increasing, narrowing the gap with comparator countries and advanced economies.

The assessment identifies strengths and weaknesses in Estonia's public investment management across three main areas: planning, allocation, and implementation. It also covers cross-cutting issues such as ICT systems, legal frameworks, and staff capacity.

Main Viewpoints

1. Public Investment Trends

• Estonia has maintained a high level of public investment, with capital expenditure typically exceeding 5% of GDP.
• Public investment has increased the public capital stock, which has grown from 40% of GDP in 2007 to 57% by 2015.
• The share of public investment in total general government expenditure has remained high, reaching up to 17% in 2007 and 16% in 2012.
• Economic and social infrastructure account for over 60% of public investment and 70% of public capital stock, similar to many advanced economies.
• Defense infrastructure is also emphasized, with higher spending and capital stock than in advanced economies.

2. Efficiency and Impact of Public Investment

• Estonia's public investment is relatively efficient, especially in terms of access to public infrastructure.
• It has the highest score among 148 countries on an index measuring overall access to public infrastructure in areas such as education, health, electricity, roads, and water.
• However, the perception of infrastructure quality lags behind the best-performing countries, indicating a need to improve the impact of investment projects on public services and citizen expectations.

3. Public Investment Management Institutions

• Overall, Estonia's PIM institutions perform well, with high effectiveness in several areas.
• The effectiveness of practices often exceeds institutional design, especially in procurement and funding availability.
• The Treasury Single Account (TSA) system ensures efficient cash management.
• E-procurement is advanced and open, contributing to transparency and competitiveness.
• Asset management is robust due to the use of accrual accounting and comprehensive monitoring.

4. Areas for Improvement

• Strategic Planning: Needs to be more integrated and aligned with fiscal space projections. A 10-year investment plan is recommended to ensure consistency in capital planning.
• Project Appraisal: A standard methodology should be adopted for all major projects, with independent external review to ensure quality.
• Consolidated Oversight: A framework for monitoring and reporting key fiscal risks, including PPPs and contingent liabilities, is needed.
• Capital Budgeting: The budget process should include more disclosures about total project costs to support better decision-making.
• Project Pipeline: A unified and transparent project pipeline across sectors is required to facilitate comparison and selection of projects.
• Central Portfolio Monitoring: A centralized system for monitoring project progress, cost overruns, and time overruns is recommended to improve efficiency and risk management.

Key Information

• Estonia's public investment management is supported by high digitalization and transparency, which are key enablers of efficient practices.
• The Estonian Public Procurement Register is an example of a system that enhances transparency and accountability.
• The SAP ERP system is used in Estonia for managing public investment, and it is considered a good practice.
• There is a need for more comprehensive data integration to improve the accuracy of public investment and capital stock estimates.
• The National Development Plan (NDP) and Estonia 2035 strategy are central to long-term public investment planning.
• Local governments and public corporations (PCs) account for nearly half of public investment activity, with PCs playing a significant role in infrastructure provision.
• The report emphasizes the importance of fiscal risk management, data utilization, and standardized project appraisal for further improvements.

Recommendations

Conclusion

Estonia's public investment management system is strong and effective, with a high level of digitalization and transparency. However, there are opportunities to improve strategic alignment, project appraisal, and central oversight of the investment portfolio. The report highlights the need for more comprehensive data integration, standardized methodologies, and stronger fiscal risk management to ensure that public investment continues to be efficient and impactful.