Government IT spending will grow 9.7 percent, GEIA predicts

Government IT spending will grow 9.7 percent, GEIA predicts

Federal IT spending will increase 9.7 percent in fiscal 2003, an industry trade group reported in its annual survey. Total agency IT spending will reach $53.1 billion, split almost evenly between Defense Department and civilian agencies, according to figures released this week by the Government Electronics and Information Technology Association of Arlington, Va.

GEIA also predicted that DOD's $26.6 billion IT budget for fiscal 2003 would rise to $34 billion by fiscal 2008, and that this year's $26.5 billion combined civilian IT budget would rise to $33.1 billion by then. The figures translate to 5 percent and 4.6 percent compound annual growth rates.

Before making the annual predictions, representatives of GEIA member companies surveyed more than 400 federal officials between May and September, said James J. Serafin, GEIA's vice president for government relations and marketing. Although the government has been funded by continuing resolutions since the new fiscal year started Oct. 1, Serafin said the projected figures reflect the budget that will eventually pass.

The GEIA survey also predicted shifts in the fiscal 2003 IT budgets of four Cabinet departments that could result from the proposed Homeland Security Department. Budgets would drop 30 percent for Transportation, 24 percent for Justice, 15 percent for Treasury and 2 percent for Agriculture if their designated agencies are reassigned to HSD.

The prediction assumed that Homeland Security would be formed at the start of fiscal 2003, and so the figures would need adjustment if the Senate significantly delays approval, Serafin said. GEIA will provide more forecast details at its 2002 Vision Conference late this month.

Last year GEIA predicted the total federal IT budget for fiscal 2002 would be $49 billion, and they said this year that the government spent $48.4 billion on IT.

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