  We know that large amount of data and information should be transmitted
through internet during transactions in E-Governance. Smart E-Governance system
should deliver speedy, space efficient, cost effective and secure services
among other governments and its citizens utilizing benefits of Information and
Communication Technologies (ICT). This paper proposes to develop a space
efficient and secured data transmission scheme using Modified Huffman algorithm
for compression, which will also yield better bandwidth utilization and inner
encryption technique with one way hash function SHA (Secured Hash Algorithm) to
ensure Message integrity.
