Estonia's public IT spending and investments doubled in 6 years, finds audit
Estonia's public IT spending has doubled since 2019, fueled by cybersecurity, agency mergers and rising hardware and software costs, the National Audit Office said Friday.
IT spending and investments by the country's public authorities rose from €123 million in 2019 to €257 million in 2024, the National Audit Office said in its latest audit report.
The increase was driven by a €30 million cybersecurity boost in 2021, mergers of agencies, and the creation of the Estonian Information and Communication Technology Center (RIT). Rising hardware and software costs also contributed.
IT investments jumped from €45 million to €83 million, with the Government Cloud (€11.1 million), the Register of Structural Support (€7.1 million), and the Election Information System (€5.7 million) among the most expensive projects. Foreign financing accounted for 30–40 percent of investments.
Meanwhile, administrative costs for IT, covering hardware, software rental, hosting and maintenance, doubled from €38 million to €77 million, while overall management costs for IT units rose to €84 million.
Staffing costs in the IT sector also soared from €40 million to €97 million, and IT unit staff rose significantly, from 1,064 to 1,743 employees. Average gross monthly wages rose to €3,481, with the highest salaries in the State Information System Authority (RIA).
Despite the surge in spending between 2019 and 2024, ministries report that current funding still falls short of IT development needs. The report highlights the importance of a central overview of IT expenditures for transparency and better decision-making.
The latest audit focused on ministries, IT units, and agencies with the largest IT budgets. Defense and security agencies were excluded.
Click here to read more on the National Audit Office homepage.
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Editor: Aili Vahtla
