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:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.


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