Victor, I think in this case, since rabies has become a problem, the government should help out because it is a public safety issue.
Even here we have low cost rabies clinics for people who might not be able to go to a Vet and pay their higher fees. Mostly those are at clinics that take donations but the state helps fund these programs as well.
Ram, I agree that there could be a more humane way to do this. Euthanasia would be better than beating to death. Spaying and neutering would be good to keep the unwanted dog population down. Even here in California, it's people who don't spay or neuter their dogs and cats who cause the problems of pets ending up in our shelters. Most shelters automatically spay and neuter pets as part of the adoption process. It saves them money in the end since another unwanted litter will end up filling their cages--and they already don't have enough room.