U.S. Government to Collect $602B over Net by 2006

According to a new report from Forrester Research Inc., federal, state and local governments will collect 15 percent of fees and taxes online by 2006, totaling $602 billion.

"An increasingly demanding and wired public is looking for speed and convenience from its government," said Jeremy Sharrard, Associate Analyst at Forrester. "Even though constituents are concerned about privacy and paying convenience fees, users see the value of online government and want those services now."

Most government services and regulatory requirements involve the filing of an application or report by businesses and constituents. Governments at all levels will receive 333 million online submissions by 2006. State governments will receive the most -- 137 million in 2006 -- fueled by online business reporting. By 2006, authorities will roll out almost 14,000 total online service applications nationwide. The majority of these services will come from the nation’s 35,000 cities and towns.

E-government adoption will evolve through three phases: experimentation, integration and reinvention. Governments’ initial forays onto the Net over the next 24 months will continue to be marked by a smattering of low-risk, clearly bounded, constituent-focused services online. For more information, visit www.forrester.com.

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