Auditor General Janar Holm’s annual speech in front of the full assembly of the Riigikogu on November 6
I am not talking today about whether the state budget should be activity-based, classic expenditure-based or something else. It’s mainly a distraction. Based on the current state budget, it would even be unfair to assess the functioning or non-functioning of the activity-based budget, because our budget, which is called an activity-based budget, is not actually that in content. The experience of countries shows that different elements are used simultaneously in budgets. If you penetrate into the content of the annual budget of some countries, which is considered classic, it is possible to find even more activity-based elements than in Estonia‘s so-called activity-based budget. The question is the appropriateness, expediency, implementation capability and skills of the approach.
My surprise and fright was great when I heard this spring from my colleague, the State Auditor of Latvia, that the Estonian public officials have introduced the so-called success story of our activity-based state budget to the Latvian Ministry of Finance and, apparently, to the Latvian government as well. The Ministry of Finance of Latvia has since started to seriously and quite actively talk about carrying out a reform in Latvia based on the alleged success story of Estonia.
We have certainly had smaller conflicts with the Latvians in history, including the so-called herring war almost 30 years ago, but in my opinion, the Latvians have still been excellent neighbors to us and they have in no way deserved to be a part of this so-called “success story” of our activity-based budget.
In comparison, it is embarrassing in front of our Latvian colleague, knowing the problems we actually have with budgeting and the budget. Estonian officials can coldly tell their neighbors that we have linked the use of state money to the results or that we have been able to increase the efficiency of the use of state money thanks to activity-based budget information. The National Audit Office’s analysis – and not only ours – shows that, unfortunately, this has not happened.
In the case of the state budget, the most important thing is not what we call the way of presenting it, but that it is possible to understand the budget carefully and clearly: where
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2024-11-07 06:59:00
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**Interview with Dr. Liisa Tamm, Political Analyst, on Janar Holm’s Re-appointment as Auditor General**
**Interviewer:** Thank you for joining us today, Dr. Tamm. The Riigikogu recently voted to re-appoint Janar Holm as Auditor General. What are your thoughts on this decision?
**Dr. Tamm:** Thank you for having me. Janar Holm’s re-appointment is significant as it indicates a continued confidence in his ability to lead the audit office, especially during these complex times. His experience over the last five years has proven vital in navigating Estonia’s financial landscape.
**Interviewer:** The vote was quite decisive, with 61 in favor and 14 against. What do you think this reflects about the current political climate?
**Dr. Tamm:** The strong support for Holm suggests a bipartisan acknowledgment of his work. In a political environment often marked by division, such consensus points to a recognition of the importance of accountability and transparency in public finances.
**Interviewer:** Holm’s annual speeches often critique the budgetary processes. How crucial is his perspective in shaping Estonia’s fiscal policies?
**Dr. Tamm:** Holm’s critiques are crucial. They not only ensure that the budget processes are scrutinized but also encourage more effective financial planning. His recent comments on the “activity-based budget” highlight the need for a more nuanced and pragmatic approach to our budgeting practices.
**Interviewer:** With his experience and perspective, do you think he will make significant changes in his second term?
**Dr. Tamm:** I believe Holm will continue to advocate for improvements within the financial framework. He is likely to push for enhancements in how the government measures the effectiveness of its spending, fostering an environment where public funds are managed more strategically.
**Interviewer:** Lastly, what should the public expect from Janar Holm moving forward?
**Dr. Tamm:** The public can expect transparency and a commitment to holding the government accountable for its financial decisions. Holm has consistently emphasized the importance of not just tracking expenditures but also ensuring that resources are used effectively. His leadership will be vital as Estonia continues to face economic challenges.
**Interviewer:** Thank you, Dr. Tamm, for your insights on Janar Holm’s re-appointment.
**Dr. Tamm:** Thank you for having me.