Admittedly civil servants in many countries have the image of doing these jobs less passionately than someone working in business would, but this does not change what is expected of them.
Cutting on the productivity on an expensive workforce very seldomly leads to actual cost reduction.
Let me clarify my point: most people (civil servants being only one example among others) don't use even 10% of MS Office capabilities (esp. on Excel, I've never seen anything but basic formulas, no array formulas, no macros and so on). For these people using a tool that performs reasonably well on these 10% is not a stupid choice.
Of course, MS Office is better than LibreOffice. But LibreOffice is absolutely no shitty software and most of the time it gets the job done.
We can hope that this issue gets solved if more heavily invested in. The "10% of savings go towards developing free software" rule is promising.