Government is a different story. The amount of money a government manager gets paid is based on how big a budget he handles and how many people are in his department. The incentive works in the opposite direction. And unlike private sector operations, government agencies can't go bankrupt. Instead, they go to the legislature for more money.
Government is overpriced because it's inefficient.
It has no competition, and the design of most agencies ensures that government managers focus on process, not results. When private companies want more money, they rely on profits and innovative ideas they can sell to investors. Junior investors and even heavy hitters on the Stock Exchange invest their money where it will do the most good. Private companies that are innovative and ideas-oriented have the opportunity to raise all the investment capital they need. Expansion or corporate restructuring can be facilitated.