For example: if a bureaucrat does not use up their budget, it is (often) reduced proportionately in the next iteration. So these people have an incentive to use up the entire budget, if they want to have any hope of getting their requests next year. As a result, they will often do wasteful spending. I know this from experience, because in my previous life as code monkey in a small-ish government contractor, my boss had made it an art form to figure out who had extra money left over near the end of the fiscal year and pitch them ideas. A few 100K here, a few 100K there and the company was making decent money just mooching off of the leftovers from Federal budgets.

If you want to fix the Federal government, you have to incentivize the officials to be rewarded for saving money.