Yes that's true, but there is no a priori reason to assume that they would be as outrageously wasteful and inefficient as the US federal government, which: (1)

Yes that's true, but there is no a priori reason to assume that they would be as outrageously wasteful and inefficient as the US federal government, which: (1) spends about as much per capita on healthcare as other OECD countries, with dramatically worse coverage, (2) spends about 10x the world average on military, per capita, (3) has a political system that is set up to make meaningful reform almost impossible, and so on...