1: Incentivize senior leaders to lean their organizations. Encourage elimination of jobs while maintaining the same level of work. These jobs can be eliminated through attrition! Every office that I have worked was at least 80% overstaffed. The savings could be used to fund other programs or as tax breaks to stimulate the economy! This is a well known problem, but leaders are not incentivized to fix it. Instead, they are focused on growing their departments and organizations as if they were a business.
2: Eliminate the end of year expiration of funds. Instead of forcing gov organizations to "hurry up and spend" at the end of the year, allow them to keep roll-over money to use in the next year (for the same project). There is inherent variation in expenses. Don't force them to overspend!