This is really a great idea. Any sincere government looking to stamp out corruption should totally look in this direction. But as we very know, the governments in most countries will not consider this. They wouldn't want to seal off their loopholes into the general treasury. I'm looking forward however to the first countries that will implement this. I would really like to see how things turn out. I won't be shocked though if after implementation things don't take a dramatic change. We humans always find a way around checks and balances. But at least then, it would take some smartness and intelligence to do away with government funds.
That is it! Any sincere government!! Between you and me, which government today is actually sincere ?
With the idea of public ledgers, this is something that would bring about a huge transparency and at least make the government accountable for every spending.
For countries where corruption has become a norm, you think this is something that would want to be allowed, and even if allowed, don't you think they will find a way to limit it so as to be able to continue with their corrupt practices ?
Just like you said, humans are bound to find a way around. It would be a great development though if the government is prepared to do something like this, but we know it would be a hard thing for them to accept but adopting the latest technology will become a mandatory thing to withstand against the new requirements.