I'm not sure what government your experience is with, but my experience (mostly with governments within the United States) is that government workers also includes the lazy, the incompetent, but also the hard working who aren't given the resources they need, and also the hard working who have the resources they need and do good work.
For that matter, I think you can find people in all of those categories in any large organization.
There are probably different types of inefficiencies that relate to, among other things, having to be more accountable for spending tax payer dollars. If $LARGE_CORPORATION chooses a given vendor for a major software system, the losing vendors may piss and moan but there's really nothing they can do about it in general. If it's a government agency, there will likely be formal challenges requiring lots of paperwork and effort.
But, for the most part, I agree with you. Big organizations can do things smaller ones can't but that size comes with a lot of overhead. I'm often surprised not that large organizations are inefficient, but that they can get anything done at all.
For that matter, I think you can find people in all of those categories in any large organization.