Doesn’t this apply regardless of whether the owner is the government or a private organization? All types of owners have their pros and cons, so I’d prefer a healthy mix so that users can pick the one they prefer.

There is also a need for governments to setup their own instances for their employees and institutions to avoid them having to sign up to a third party service if their work involves communicating on the fediverse, which also makes it clear that messages sent from this instance are official government communication (like governments have done with email for a long time). That’s how the EU’s Mastodon instance is setup: https://social.network.europa.eu/about