In an attempt to reduce administration costs across Whitehall, the Treasury has decided to cut its IT spending by £95 million.
The measure is a part of the government's plan to make £6.2 billion in savings to reduce the nation's budget deficit this year.
A report on tech news site THINQ yesterday suggests the new government has also put on hold all new IT initiatives costing more than £1 million.
A new Efficiency and Reforms Group has recently been created as a part of the Cabinet Office with the purpose of identifying such initiatives.
The government is yet to specify how it plans to shed £95 million in IT spendings, but it has released the list of government departments that will see cuts in their IT budget.
Departments hit include the Department for Business, Innovation and Skills, which has been ordered to slash £100 million from its running costs this year.
The Department for Revenue and Customs has also been asked to save £125 million by re-negotiating IT deals with contractors and suppliers.
The Treasury has announced it believes that the government stands to save £1.7 billion if it decides to delay or cancel ongoing IT contracts.