Can you seriously compare a very wealthy city-state to actual countries? Do you not see why you can't run the UK like you would Monaco?
You really went out of your way to pick the only "country" you could find with both low government spending and high quality of life, despite the data proving a strong correlation between these two in actual countries. Wow.
Most Western European nations have a government expenditure as a percentage of GDP of roughly 50%; half the economy is government.
Singapore, a famously productive country, is around 15%.