The main goal of the study is to compare the management of Estonian public forests and the factors influencing the management with the Finnish public forests. The concept public forests refers here only to the forests managed by the state forest organizations--'RMK' in Estonia and 'Metsahallitus' in Finland. When analysing the management of state forests, all the goals set for the organisations have to be considered. In Finland, the goal setting has been more precise and complex than in Estonia, where the mission of RMK is formulated as the efficient ad sustainable forest management. In both countries the public owner's interests are reflected in the State Budget--financial provision to the Budget is very important driving force of the activity in both organisations. The indicators discussed in the study are supply of roundwood and financial performance of the forest management.