As has already been said the public have demanded to know where their money is being spent and so paperwork is the end result.
Things I witnessed in my time in the public sector;
Blackberry's for an entire directorate - including suppport staff
Senior member of staff has their home utilities paid for
Middle management - i've yet to meet any mid-manager who is worth their £35-55k salary.
IT systems bought by 'friends' of higher up people
Did you know that expenses claims are capped for lower level employees (cheapest train ticket to meetings etc) whereas over a certain band you're entitled to travel first class, on 'company' expenses.
Building rents and facilities management
Over catering of meetings and training sessions.
Away days and residential training courses where they're really not needed nor can they be justified.
Whole directorates set up to manage budget cuts...
What always gets me is that the people who need to be axed to save money won't be, because they're the ones making the decisions on who go's whereas the frontline staff who deliver the service...nope...you're gone mate. New fangled computer system is coming in to replace you.
So glad i'm out of that now. Never to return!