Programs like Sovereign Tech Agency (npub1yng…nhrk) and Prototype Fund (npub1y8k…05lv) are a step in the right direction, but that model is mostly reactive (i.e. funding what currently exists in the wild), rather than proactive (e.g. strategically funding medium-term work towards a viable Office alternative).
The government would actually have to document its requirements and commission someone to specifically work on those issues. As far as I know that approach to free software funding has not been tried yet though.