e-GOVERNMENT IN FINLAND - ePractice.eu

most important way to fund e-government activities, but around half did report receiving some of their
funding through charges to users and/or other organisations.
Figure 3.2. Funding of e-government activities through organisations’ own general budgets
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Source: OECD
Reallocation of funds New funds Charges on e-government services
Most important Medium importance Least important
Box 3.1. Financing from user fees: the JULHA Directory
The Advisory Committee on Information Management in Public Administration (JUHTA) launched the Public Sector
E-mail and Contact Directory Service (JULHA) 20 in 1998. Its objective is to provide contact information for
electronic interaction with the Finnish administration. The directory can be used with a browser, LDAP, WAP and
Communicator.
In 1997, the Ministry of Finance and the Ministry of the Interior paid for the X.500 directory software and some
development costs. The operation of the system was left to an operator chosen by an open call for tender. Since no
central funding was available, a different approach was needed, and the operation of the JULHA directory is therefore
financed by fees collected by the operator from organisations that publish their contact information in the directory.
The use of the directory is free of charge.
Running a directory involves high fixed costs. In the first year, some large organisations volunteered to pay a rather
high fee to get the service started. The fees did not cover costs, however, and the operator therefore sought new
customers for the service. These have made it possible to lower the user fee, and this, in turn, has attracted more
customers and, as the number of entries increased, further increased the value of the directory. As a result, the number
of customers is increasing after a slow start.
94. One small agency with a staff of about 120 reported that online filing of application forms will
eliminate some routine work and free staff for better customer service. As it has the authority to reallocate
within its own administrative budget to pay for ICT costs, it plans to use some of these savings to help
finance the development of further e-government services. In addition, approximately 10% of its budget
comes from user fees for certain types of licences.
20 www.julha.fi In 2000, JULHA was transferred to the Population Register Centre.
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