Premier Jacinta Allan and Treasurer Jaclyn Symes on Thursday released a long-awaited independent review of Victoria's public service, led by banking executive Helen Silver.
The Victorian government has agreed to more than $4 billion in cuts - less than the $5 billion in recommended savings - with the total headcount expected to fall by more than 1000 full-time equivalent workers.
Measures include reducing 332 executive and similar roles, slashing spending on consultants and labour hire, cutting CBD office costs, and merging or winding up entities.
Frontline roles such as teachers, nurses, police and child protection workers were not within the review's scope.
It found Victoria's public service workforce has grown 16 per cent since 2019 and executive roles rose 52 per cent.
The moves will end unnecessary duplication and rebalance the state's "top-heavy" public service.
"Families are watching every dollar they spend, and they expect the government to do the same," Ms Allan said.
"It's why we're reducing waste and inefficiencies so we can invest in the things that matter to Victorians."
When announcing the review in February, Ms Symes said she was targeting job losses between 2000 and 3000 jobs - about five to six per cent of the public service workforce.
The Victorian government will introduce legislation on Thursday to enact the review's recommendations.
Twenty-seven were accepted in full, three in part and 15 in principle.
Seven were not accepted, including ending certain school programs and abolishing government entities such as the Geelong Authority.
Victoria's more than 500 public entities and 3400 boards and committees were costly and "unwieldy", the review said.
Ms Silver called for entities to be reduced by 78 and up to 90 advisory bodies to cease.
The government's response falls short of the mark, only committing to cut 29 public entities and boards.
Ms Symes' predecessor Tim Pallas sought to cut 3000 to 4000 public service jobs in the 2023/24 Victorian budget.
Instead, employee numbers grew from 54,760 to 54,839 over the financial year and the total wage bill was forecast to rise from $38 billion in 2024/25 and $42.4 billion in 2028/29.
Victoria's net debt is forecast to reach $194 billion by mid-2029, sending interest repayments soaring close to $29 million a day.Â
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