Honesty is a value that is bigger than not telling lies. It also means to be open, transparent, and accountable. It means not lying, not pretending (consistency), being clear in speech and actions (transparency), taking responsibility for actions, and admitting mistakes or when you cannot meet a demand. 

Both private citizens and public servants (the government) must be honest with each other because there will always be consequences. For example, citizens should not try to escape paying their taxes or cheat in their exams. If the former happens, the government will not have money to fund public services and subsidize utilities such as transport, water, and light. If the latter happens, professionals and workers will not be able to vouch for their education and will not mind cheating their customers since they are used to cheating. Imagine a car repairman who cannot repair your car but still charges you anyway?  

The government should also be honest with the citizens. They should not take bribes, declare expenses and the budget, and carry out their job well. Unfortunately in many countries, the government is corrupt and steals taxpayer’s money. In such an environment, dishonesty becomes the social value - value erosion. Corruption is one way that dishonesty manifests and the consequences are terrible. 

For example, if the police take bribes, people who drive badly won’t be punished and can cause an accident that can take lives. If people evade taxes, there would be no money to build nice schools and facilities for children who cannot afford private ones. If government officials embezzle funds, they take money away from social services and programs that would better citizen welfare. They also would not be the sort to enforce laws that punish corrupt/dishonest citizens. 

Expanded Perspectives:

Honesty - Honesty for Kids

Story about Honesty - A Tale of Honesty and Betrayal