Yes but that has nothing to do with the size of it. And it's not an inherent problem. You can get rid of corruption and still keep a government theoretically. Also unless you to live in an anarchy there's no feesible way to remove government from the equation completely.
The NYPD is one of the largest police departments in the world. You don't think shrinking the police force (which is part of the local government) would reduce occurrences of misconduct and brutality? Here in NYC the NYPD has a disturbing pervasive presence. You can't walk 5 blocks without seeing a uniform officer or surveillance cameras operated by law enforcement.
As for size, well, it is very difficult to efficiently control and manage a large entity (i.e.: apartment building, a corporation, government, cruise ship). The behemoth size of modern government will open itself to rampant corruption on all levels. NYPD officers operate with unparalleled authority and routinely violate people's rights everyday, and they're able to get away. They're rarely punished or reprimanded for misconduct since their COs encourage it. This unchecked, unmitigated authority that the NYPD wields will lead to more police shootings of unarmed persons, more civil forfeitures, more women mysteriously die in prison cells, more women being sexually assaulted by law enforcement, more private prisons, more black men getting draconian-like sentences, more people disappearing for weeks in 'black sites', more grandmas getting choked out at family BBQs, more pregnant women getting WWE body slammed, etc.
One of the greatest cons in human history is convincing people that government is a necessity. And it saddens me that this ideology is deeply ingrained into people's consciousness. So many of our problems stem from government. Yet, counter intuitively, many people support an expanding government (some even want outright socialism). It makes no sense.