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:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care


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