I think you would have multiple ways for financing.
As you said government at multiple leves might choose to finance different types of movies.
You’d have student films where everybody is just working for fun.
And you’d have something similar to crowdfunding.
I don’t know what I was expecting, but it was not this:
https://www.jpost.com/israel-news/100-percent-of-foreign-agriculture-workers-were-sexually-assaulted-expert-says-682532