

All good points. I mentioned their lakhs of employees, because that bill keeps rising and probably faster than income. It is the public sector - they will waste money on unnecessary things - but they need to keep up with the personnel bill additionally. That combination means they need to generate money from somewhere.
I think government funding patterns have changed, and ministries have been looking to generate funds rather than be funded by the exchequer. Think BSNL, NHAI. So too IR?
I don’t know how it is in never-colonized countries, but here, local bodies don’t get much by way of taxes and infrastructure spending is by state or national government since all income and business taxes go to them ala colonial administration. Locals don’t have leverage over infrastructure projects, and local body politicians have no pressure from locals over their handling of non-infrastructure funds.