Federal government is spending 1.2 billion euros on digitalization!

Federal government is spending 1.2 billion euros on digitalization!

Federal spending on software and IT services reached a notable increase in 2024. A total of 1.2 billion euros were invested in these areas, which corresponds to significant growth of over 27 percent compared to the previous year. What is particularly noticeable is the increase in spending on software licenses, which more than tripled to 160.2 million euros. Other software also experienced a notable increase, with an increase of 38.4 percent to 224.3 million euros. IT services accounted for 884.4 million euros, which corresponds to an increase of 13.4 percent. These figures come from the federal government's departments without including the downstream authorities, according to Kreizeitung Wesermarsch.

But what is really behind the numbers? Bundestag member Dietmar Bartsch from the Left is pushing for faster implementation of digitalization strategies and criticizing that taxpayers should not pay for American software companies. Bartsch calls for a comprehensive coalition software strategy to reduce costs and reduce dependence on large technology companies.

Transparency and planning of digital editions

Federal spending on digitalization was revealed for the first time in February 2025. The analysis revealed that total spending on digitalization in the fiscal years 2019, 2021, 2023 and 2024 is over 60 billion euros. A detailed examination of digital spending shows a doubled between 2019 and 2023, with the corona pandemic acting as a decisive driver. The proportion of administrative digitalization is surprisingly high at over 16 billion euros, according to idw-online.

The expenditure is divided into four main categories: digital administration, digital infrastructure, research and innovation and the Bundeswehr. However, as a comprehensive analysis has shown, there is a lot of ambiguity and lack of detail in over 20,000 budget titles when it comes to transparency. Against this background, an improvement in the data basis for evaluating expenditure is called for.

Digitalization as an opportunity and challenge

Digitalization is making unstoppable progress in German society, the economy and administration. Various studies, including those by Statista, show that a digital strategy has identified five central areas of action. This includes strengthening digital skills, building a solid infrastructure and promoting innovation.

However, digital change also entails risks. Cyber ​​attacks are increasing, primarily due to the shift of many everyday activities to the digital space. The fear of a digital war has increased further due to the Ukraine conflict. According to current figures, over 67 million people in Germany already use the Internet, and more than 90 percent of households have access to it. Nevertheless, Germany is still perceived as a latecomer in the international comparison of digital skills.

Overall, it shows that digitalization has great potential for both economic and ecological improvements. The German population has high expectations of digitalization, especially with regard to administration. There is therefore great pressure on politicians to finally push forward digitalization quickly.