IF i had the chance to managed a certain government i would really apply blockchain technology and give their budget in a form of cryptocurrency or digital currency that could be used as a form of payment and could even trade to fiat money. In this way we could eradicate the corruption because the public could be aware on where the budget of the people coming from taxes will going through. Yet, until now the government is not interested on cryptocurrency or if they are they are not willing also to investigate and checked how cryptocurrency works and how could it will be applied on their system. They just want their business to continue as usual doing ghost project? I do not know maybe!
Blockchain won't eliminate corruption. Let me give you an example - the government allocates 100 bitcoins (or any other cryptocurrency for that matter) for construction of a bridge. This gets paid to a contractor. The contractor doesn't build the bridge according to specifications, pockets the amount and pays off government officials in kind. Everything looks hunky dory on the blockchain, but there is corruption.