Federal FY2005 IT Spending Request Indicates Slow-Growth Trend

By | February 6, 2004 | Uncategorized

President Bush’s fiscal year 2005 budget contains a $59.8 billion request for information technology spending, an increase of less than 1 percent over the previous year’s request, indicating a major slow-down in the pace of growth in the federal IT market, according to preliminary analysis released by Reston, Va.-based market research firm INPUT.

From FY 2003 to FY 2005, the annual increase in federal IT spending, according to the Office of Management and Budget‘s data, averages only 2.3 percent per year. According to INPUT’s analysis, despite the flatness of the President’s FY 2005 budget request, IT spending on an agency-by-agency basis shows significant change. The Department of Defense, in particular, is seeing a dramatic redistribution of funding. With the FY 2005 request, the Air Force and Navy are seeing significant increases over 2003 spending while the Army is seeing an equally large decrease.

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