Most countries have either zero vital statistical data or when they do it is highly unreliable such as the SOcial Security Administration says that there is 6.5 million people who are 112 years old. Yet these same people have figures for every country. That is the very definition of fabrication.
Yes, the government oftentimes makes statistics make them look good. You can make numbers say anything and it's in the governments interests to ensure that the people think they're doing things effectively and efficiently. They have the power and the people to ensure that that will always be the case, at least in the United States.
Yes, the government often fabricates statistics, because they want to control what we believe. These are the same people who keep telling us that employment is going down, when we all really know that unemployment is staying the same, and they are just changing the way that they report the numbers.
Is it over or under fabricating? The point is it happens! Whether through the paparazzi or other sources more often then not your hearing of things like Benghazi, Twin towers, and other economical decisions gone wrong. Surprisingly (not really) know one wants to step up and take ownership for the decision or decisions, but when in doubt fabricate or find a fall guy.
I do not believe the government fabricates statistics. Statistics are not an exact science, you can rig the system to get the results you want. I think the government tends to be guilty of this, rather than simply fabricating things. A prime example is the unemployment rate which directly disqualifies a lot of people who are seeking work, but have been out of the workforce for so long that they no longer count. To me, that's not reporting fairly or honestly, but it's been happening for a long time.