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.
A friend who worked for the phone company told me a story about a guy who got into trouble for increasing efficiency. I forget the details after 30 years, but the guy made some operation much more efficient, and they could do the work for much less. The state utility commission thereupon ordered the phone company to lower their rates accordingly.