4. Financing and Resourcing Digital Government Strategies

Over the last two decades, information and communication technologies have become an indispensable tool for government entities, which use them for effective delivery of services, internal management processes, and efficient internal and external communication. Digital government projects vary in their scale and complexity, but they all share a complex financial and resourcing management cycle involving defining a funding portfolio, analyzing budget trends, organizing budget data, formulating operating budget, preparing current and capital budgets, decision-making strategies of a financial plan, presenting the budget, and implementing the budget. This chapter presents a number of recommendations and strategies on how government entities can manage the difficult task of financing and resourcing digital government projects and services through this cycle. Unlike other government projects, digital government projects are often financed from multiple sources such as general tax funds, intergovernmental transfers, programs and subsidies from national level, and local taxes and fees. In addition, resources for digital government projects, whether financial or staffing, are often pooled across agencies adding an extra layer of complexity. This chapter recommends several strategies to facilitate better implementation of financing and resourcing digital government initiatives in the public sector.