Outgoing selection chief of government-run companies says that these firms spending on stuff will help prop up the economy. He’s not wrong, except that it can also be a total waste of money which can quite really bring about much slower growth and in more dire circumstances, a recession. It probably has a bit to do with how connected and linked most elements in an economy are.
Economic growth is just a measure of value created — the total of the prices of a good sold or service given. Optimal growth requires resources to be directed to those areas which give us max value/profit. Government-run companies are hostage to political dictates and even otherwise don’t have the incentive to be careful with tax money (or even money they’ve generated) because they always get topped up with more taxes.
Furthermore, running a bank or factory is not a job for the government. No, government-run companies shouldn’t spend taxes and they should instead be given back to the taxpayers and these companies — must be privatised, whatever the value you get — no more excuses.