Smarter Use of IT Could Reduce the Deficit by $220 Billion, group says

A cadre of government technology officials and vendors predict agencies could cut up to $220 billion from the annual federal deficit by upgrading IT systems and using better data analysis to cut waste and improve efficiency.

The largest share of savings, $100 billion annually, could come from adopting technology best practices from the private sector, according to the Quadrennial Government Technology Review posted online from the American Council for Technology-Industry Advisory Council, a nonprofit government-industry group focused on federal technology. The government also could save $50 billion annually by using new data analysis tools to reduce the share of uncollected taxes due the government and the number of improper payments agencies make through error or fraud. The figure represents roughly a 10 percent reduction in the $385 billion in annual uncollected taxes and $100 billion in improper payments, estimated by the Internal Revenue Service, the review said. ACT-IAC also estimates the government can save $70 billion annually by putting new data analysis tools to work to reduce health care costs.