The one biggest problem the government has with reguards to spending is that with every new program or regularion they inact, the administrative expense doesn't count. With federal programs running from 60% administrative costs on up, it definitely counts.
If any private business spent like that, they would be just as broke but also out of business. Obama has added a whole new cabinet full of czars and their staffs of thousands all producing nothing of value. That is where I'd start the cuts