Let me clarify my position:
I think the Republicans in recent years have mistaken smaller government with decreasing taxes vis a vis Reagan's trickle-down economics. While income decreases, expenditures increase in some areas (military, etc.) while decreasing elsewhere (department of the interior, social programs) generally leaving a moderate increase in budget.
To the republican's credit, they usually have a goal in mind with these huge budgets. Reagan went over the top in military spending to the point that the Russians simply couldn't keep up anymore. Thus the end of the cold war.
The current Bush has his "War on Terrorism." However you feel about this war, all must agree it's expensive.
Also, the way government is structured, it's hard to make sweeping changes in the short terms of office our politicians hold at the executive and legislative level. Our founding fathers established the checks-and-balances system so that government is purposefully slow and indecisive.
On a more general theme of governmental economics, remember that politicians get to be where they are by compromising and dealing with other politicians, which doesn't encourage the dismantling of government systems or the lessening of budgets. You get where you want to be by promising MORE pork, not less. Because in the end, all politicians buy votes by promising goods to their constituents. At the local level, they get funding for community centers and parking garages. At a state level, they can promise bridges and education, plus contracts for large revenue and job-producing corporations. At the Fed level, the same, only on a larger scale. Listen to any campaign or State of the Union speech--they'll promise all these new fantastic programs and initiatives, as well as a tax cut. Add 2 new burdens to the budget, then decrease revenue. Crazy, but it buys votes.
You wouldn't manage your own finances this way. By the way, if you think I'm nuts, I've witnessed the wheeling and dealing in person--I worked in state government as a press secretary for two years. An eye opening experience.
OK, that was coming close to a rant, hope I reined it in well enough.