In a government bureaucracy, your status and compensation is determined by the number of people you manage and the size of the budget you oversee. That tells you all you need to know about why government managers would not be interested in anything that would allow them to operate with fewer people and a reduced budget.
You are absolutely right. I used to work in a bureaucracy and I managed at least 3 little state grant programs by myself. After I left each program employed at least 3 people. There was never any credit given for efficiency.