According to an international research and analysis firm Gartner, the government IT spending in the year 2015 is poised to reach 7.2 billion dollars which is around 5.5 percent above the amount spent in 2014 when the total government IT spending was 6.6 billion US Dollars. The expenditure predicted by Gartner includes the spending by central and state government as well as their agencies and it includes the expenditure on software, hardware, IT personnel and telecommunications.  

 

The substantial increase by the government in its IT spending has several ramifications for the governance as well as economy. It should been seen in the light of slogan of ‘minimum government and maximum governance’ launched by the BhartiyaJanta Party (BJP) before the general elections in May 2014. Further, in order to bring in the transparency in the working of government, robust expenditure in IT sector is a prerequisite.

 

First of all, government required to bridge the digital divide in India as still there is a big chunk of population in the country’s remote areas where internet is yet to make inroads. 

 

In modern days, ICT technology has become the fasted mode of communication and information sharing. Its potential to spread education and awareness is also much greater than the traditional media. 

 

Thus the most important way for the wholesome development across the country is increased digital penetration. Once the every village of the country has access to the IT, every village will have the access to every government programme and policy. 

 

Though private sector is also participating in the development of IT infrastructure, but for the countrywide development of infrastructure even in the not so lucrative areas, substantial expenditure by government would also be required.  

 

Many programmes have been launched by the government in recent months which so far have promised to turn the fortunes of the country. One such programme was ‘make in India’ where it was planned to simplify the procedures and make them user friendly. IT has a great role to play in making the procedures user friendly. 

 

Another use of IT will be seen in highway toll collection where government will commence the electronic toll collection process across national highways from October 27, 2014. With the inauguration of Electronic Toll Collection (ETC) system by the Minister of Road Transport and Highways on October 27, a uniform and acceptable standard of service to the commuters would become a reality.  

 

As government plans to accelerate the digitization of core government processes, the maximum spending is likely to go for the development of software where specific software would be required unique to a particular government vertical and not just horizontal extension of another vertical. The software market in India is forecast to grow 788 million dollar in 2014 and further to 910 million dollars in 2015.

 

The IT expenditure will also cover information services staffs which include all company employees that plan, develop, implement and maintain information systems. With the economy on upswing and thrust on digitization and technology infusion, in the coming days, IT sector is going to play an important role in the growth story of India.Stay informed,

 

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