Government spending on ICT is $5 billion
Monday, 30 January 2012
Posted by: Paul Horowitz
25 January 2012
Government spending on ICT is
The Australian Government is a major consumer
and producer of Information and Communications Technology (ICT), with annual
expenditure of $5 billion, Special Minister of State Gary Gray said today.
He released a report outlining expenditure by
government departments in 2008-09 and 2009-10.
"The report gives a very useful insight into the
Government ICT market,” Mr Gray said. "The Government’s investment in ICT is
improving the way it delivers services to the community and industry.”
Australia’s total ICT market is estimated to be
worth nearly $100 billion.
The report shows that:
The Australian Government is a major consumer and producer of ICT
services, with annual expenditure of about $5 billion per year;
ICT expenditure has increased marginally between the two years in real
terms (i.e. after correcting for the effects of inflation), but decreased as a
proportion of departmental operating costs;
ICT accounted for about 5 per cent of agencies’ total operating costs in
The Government is investing in enhancing and extending its ICT
capability, with 30 per cent of its expenditure on new projects in 2009-10.
"The Government is investing in the largest ever
infrastructure project undertaken in this country, the National Broadband
Network, that will improve services in the education and health
sectors and offer the potential for productivity improvement for businesses,”
Mr Gray said.
Some of the major service improvement projects
in progress enabled by ICT include:
Service Delivery Reform (Department of Human
Services) - transforming government service delivery by delivering more
one-stop-shops, more self service options and more intensive support for those
who need it; and
Passport Redevelopment Program (Department of
Foreign Affairs and Trade) - a new passport issuing system to help the
Department achieve better client service including through improvements to the
online passport application process.
"While this type of data has not been released
previously, the release is consistent with the Government’s ongoing commitment
to providing better access to government held information.”
The data has been sourced from agencies subject
to the Financial Management and Accountability (FMA) Act 1997 through an annual
ICT benchmarking data collection exercise conducted by the Department of
Finance and Deregulation.
The objectives of the ICT benchmarking program
are to measure progress in improving the efficiency and effectiveness of ICT
services in the delivery of Government programs, and inform other
whole-of-government ICT policy initiatives.
Data for the 2010-11 financial year is currently
being analysed. It is anticipated that a report including this data will be
released in the next couple of months.
The report is available online at www.finance.gov.au and www.data.gov.au.