That kinda reminds me how when you upgrade hardware for your webapp new features quickly crawl in that utilise the hardware. They might not be needed but they become possible so they come into existence.
To reduce amount of bureaucracy you'd have to pick some work-consuming area of the operation, make it obsolete by government act and fire all the people that were doing that work so they will not be available for other tasks inflating them.
To avoid their complaints you should still pay them salaries for few years but allow and encourage them to find themselves another job outside government sector.
This also happens when you upgrade to a new version of a programming language or operating system. You start to use features that previously did not exist or restructure your code to utilize such features. However, many times this is a great benefit to help with the readability of the code. I have done this myself with hardware and software.
To reduce amount of bureaucracy you'd have to pick some work-consuming area of the operation, make it obsolete by government act and fire all the people that were doing that work so they will not be available for other tasks inflating them.
To avoid their complaints you should still pay them salaries for few years but allow and encourage them to find themselves another job outside government sector.