As per Nasscom (National Association of Software and Service Companies) study, State governments will spend close to a staggering Rs 15,000 crore on computing their operations over the next five years. The government sector accounted for nine per cent of the total IT spend in India in 2002, which is estimated to go up to 15 per cent of the total IT spend in the next five years, the study said.
Central government proposed a total outlay of Rs 2,550 crore ($560 million) for the national plan of e-governance for the year 2003. While Rs 1,485 crore had been allocated for the Centre, Rs 800 crore was earmarked for financial institutions and Rs 265 crore for state governments, Nasscom said. According to Gartner estimates, the Indian government has spent around $1 billion on IT in 2002. This includes the expenditure of the state and central governments on hardware, software, telecom equipment and services and it. With over 20 states and Union Territories already have an IT policy in place, e-governance is still in infancy in India. In terms of basic computerisation, police departments, treasury, land records, irrigation, and justice are seen as having the maximum potential, mentioned by Nasscom. The initiatives taken towards e-governance projects has resulted in an increase in the overall IT budget of state governments, sometimes by an order of almost 100 per cent. Andhra Pradesh takes the lead, in terms of states' progress in e-governance.