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If you're playing somewhere like China or Japan, you're meant to live with enormous tax waste until you catch up technologically and socially to the western powers. Trying to fix it with thousands of bureaucrats is unproductive.
But yes, as said above, I think the return on investment trying to build Gov Admin is not worth it until maybe later when you have better production methods for the buildings and paper is relatively inexpensive.
If playing japan you either turned up policy levels too far or opened your market without removing traditionalism or getting appointed bureaucrats.
Generally a state with too many people and no taxes from a lack of efficiency would cost you nothing, as long as you don't have construction offices, infrastructure (ports/railways), government administrations or universities built in it. It also means a state that does not have taxation capacity should not be built up economically/industrially over states where one can tax efficiently already.
Once the economy is well working and fully taxed in states where it was viable and saturation kicks in (from a lack of infrastructure, population or resources) one can then branch out into states where tax efficiency is low and build them up.