All good points. I mentioned their lakhs of employees, because that bill keeps rising and probably faster than income. It is the public sector - they will waste money on unnecessary things - but they need to keep up with the personnel bill additionally. That combination means they need to generate money from somewhere.
I think government funding patterns have changed, and ministries have been looking to generate funds rather than be funded by the exchequer. Think BSNL, NHAI. So too IR?
On a lighter note. There are Git experts? ;-)