Crikey has a cheerful analysis on why the public service will continue to grow:
While stories about staff cuts are attention-grabbing, we should also take into account that there will be other some other areas of the public service that will grow.
We already know, for example, that Ausaid is to expand enormously, with (roughly) a doubling of the aid budget over the next five years. One of the fastest-growing areas of the public service has been ASIO, and it needs more staff to fill a monstrously huge building under construction that occupies a large swathe of prime waterfront land on Lake Burley Griffin in Canberra. The carbon tax has new regulatory and oversight agencies that are expanding.
On the other hand one has to wonder if a cash strapped government can’t get more bang for the buck from the public service workforce?