IT Spending Slows

March 25, 1997

IT Spending Slows

Federal government spending on information technology in fiscal 1998 will be about the same that it will be for fiscal 1997, the Bureau of National Affairs, a Washington newsletter firm, reported today.

IT expenditures peaked in fiscal 1996 at $26.2 billion, but are slated to fall to $24.7 billion this year, Office of Management and Budget numbers show. The budget projection for fiscal 1998 IT outlays of $24.8 billion shows a slight rise. But expressed in constant 1992 dollars, the 1998 amount is $400 million below 1997.

The Defense Department accounts for about 42 percent ($10.3 billion) of IT spending projections in fiscal 1998. The Department of Health and Human Services tops civilian agencies with $2.3 billion in IT spending.

One executive told the bureau the IT stagnation is sobering for contractors.

"It shows that no sector is immune from budget realities; the salad days are over," the executive said.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security


When you download a report, your information may be shared with the underwriters of that document.