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Government and Private Business have a symbiotic relationship. The Government doesn't actually produce anything. They take wealth in one form or another from the Private side of things, and then uses it as they see fit. Often times they put it back into the private side in one way or another.

So they don't actually provide "free" services, they are just putting the money they took back into the business. What they gain from doing so is, hopefully, a more healthy private business. After all, the better a private business does the more money the government gets from them.

Businesses also provide jobs, so the better a given business does, the more people they can employ and/or the more they can pay those people. The more jobs, the higher the wages, the more tax money to the government (along with all the other benefits that come along with people being employed).

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