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Pace Of Government IT Spending Predicted To SlowPace Of Government IT Spending Predicted To Slow
Reduced growth is due to consolidation, deficit reduction, the mounting costs of the war in Iraq, and hurricane relief efforts, a new study says.
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WASHINGTON — U.S. IT spending is expected to slow over the next five years, but would still account for more than 7 percent of U.S. discretionary spending, according to an industry forecast released Tuesday (Oct. 25).
The Government Electronics & Information Technology Association (GEIA, Arlington, Va.) said total federal IT spending is expected to total $64.7 billion in fiscal 2006. By 2011, U.S. IT spending is expected to hit $74.4 billion in current dollars.
GEIA attributed slowing growth in spending to consolidation of government functions, deficit reduction and the mounting costs of the war in Iraq and reconstruction efforts after a series of disastrous hurricanes.
The civilian portion of the fiscal 2006 IT budget totals $34.6 billion, GEIA said. Defense Department IT spending will account for an estimated $30.1 billion in 2006, and is expected to grow 3 percent to $34.8 billion by 2011, the association said.
Elimination of legacy computer systems is a key goal of government IT programs, the survey found.
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