Lots of treasurers have woken up to post-budget headlines shouting: "Beer and ciggies up".

In 2016-17, new Treasurer Scott Morrison might have left drinkers largely alone - although he's tightening up on the Wine Equalisation Tax Rebate - but the biggest single revenue measure in the budget is the $5.1 billion the government expects to raise in four years from smokers.

It will do this with four annual 12.5 per cent increases in the tobacco excise, while halving the duty free tobacco allowance from 50 cigarettes (or their equivalent) to 25.

The net gain to the budget is predicted to be $4.7 billion.

"These changes will improve the health of Australians by reducing their exposure to tobacco products and will ensure that tobacco products consumed domestically are fully taxed and comply with Australian regulations," Budget paper No 2 says.

"These four annual increases will take Australia’s excise on a cigarette to almost 69 per cent of the average price of a cigarette (assuming no other changes to cigarette prices over this period), close to the World Health Organisation recommendation of 70 per cent of the price of a cigarette."

While these changes will no doubt be applauded by the health lobby, they are an indication of how little room the Treasurer was left to work with once tax flag after tax flag was hoisted - and then pulled down again hastily - by a nervous new Prime Minister in the form of Malcolm Turnbull.

The Coalition parties traditionally position themselves as the parties of "small government" and there are signs in this budget that they may finally be achieving that aim.

Budget Paper No 4 says the number of federal government organisations has gone from 1332 in 2013 to 1193 now, with another 34 "ceasing or consolidating".

Average staffing levels have gone from 179,953 public servants and 76,678 defence employees 2013 to 167,340 and 76,842 this year, and 167,155 and 78,319 predicted in 12 months time.

Since July 3013, about 40 per cent of the 31,090 public servants who left the government did so by way of redundancy, costing about $197 million across 38 agencies.