Pace 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.
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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