That makes no sense. Aside from the issue of comparing government to for profit companies, for profit companies also don't operate that way when looking to cut costs. They absolutely look to make informed decisions if they want to keep the enterprise going after all the cost cutting.
I'm not saying a for-profit company would just do "gorel hagra" and pick random things to cut, but anything that looks like fat would start to get chopped - not spending a 10-year study to figure out each item's potential value. And then after the chopping, there can be deeper reviews, see how things are working without those additional expenses, and a process for adding things back that turn out to be truly necessary.
There are things that are totally wasteful, things that are valuable but too much money is being spent on, and things that are valuable, important and nice to have, but not at the cost of being in the red.