Add to this the lack of incentive to save money and you've got a right good mess. After spending time and effort to save funds on a program (government in this case), we ended the year with a surplus of funds (in the 10x of 1,000's range, I know it's a drop in the bucket but, we were quite proud at the time). When next year rolled around we were suddenly "poor estimators" and had "poor financial management", so our budget was cut by several times over our savings from last year.
That was many years ago but, since then I experienced a similar mentality in the private sector, especially when dealing with government contracts.
Also, our parent company recently took over management of our capital purchases. We have the money, we have the need, we have reviewed the data but, now it takes and extra 4-6 months to purchase something (e.g. a upgraded SAN). It seems that another subsidiary had some issue with their purchasing process, so rather than deal with the problem, Mother (our loving term for our parent company), created several more.