The real problem with government is the nature of the institution itself. Consider the fact that there are four characteristics that define a government's performance. They apply equally to federal, provincial and municipal levels of government. Interestingly, they're polar opposites of what characterize a private sector business. Managers and workers are rewarded on the basis of efficiency and performance.
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.