Report: Smarter Tech Could Cut $220 Billion from Federal Deficit

Through a few tweaks, the federal government could use technology to reduce the deficit by $220 billion, according to the American Council for Technology-Industry Advisory Council's (ACT-IAC) Quadrennial Government Technology Review that's scheduled for release Nov. 13. About $100 billion in savings could be made annually, NextGov reported, by adopting technology best practices found in the private sector.

An additional $50 billion could be saved annually by using new data analysis tools to cut down on uncollected taxes and improper payments. Annually, there are about $485 billion in such uncollected and missed payments, so using data analysis tools would represent a more than 10 percent reduction in losses. An additional $70 billion could be saved annually, the organization estimated, by using data analytics to reduce health-care costs. The nation's total annual health bill would be reduced by 8 percent in such a case.

“The federal government already collects and stores great quantities of data,” ACT-IAC said. “Moving deliberately to match this data with the power of emerging analytical technologies provides new opportunities to create actionable information and insight to inform decision-making across federal programs.”

The report also recommended the creation of better data standards across government and improving transparency and civic engagement, NextGov reported.

An in-depth story on the report can be found on The Wall Street Journal's website.