Rather than looking at funding cuts or selling off government enterprises, the focus could be on “more for less.” A lot of money is wasted on expensive programs with poor outcomes.
Introduce some quality into outcomes as well as the processes used to achieve them. This will reduce wasted expenditure. An example of the approach to achieve this is provided by the US government. In 2002 they established a specialist agency to perform impact evaluations on publicly funded educational programs. Its work continues to help educators select the most effective approaches to issues such as reading achievement, treatment of learning deficiencies, the teaching of mathematics and so on.
The demonstrated success this model and its evidence based approach has encouraged its adoption by the World Bank and the UN for assessing the impact of far more wide ranging programs.
For more information look at the What Works Clearinghouse