"For years, Libyans have been unhappy with the workings of their country's ministries which have been transformed into a labyrinthine bureaucracy in which corruption and maladministration reign," Gaddafi told Libya's equivalent of parliament late on Sunday.
"Apart from the main departments of defence, internal security and foreign affairs and those responsible for strategic projects like the Great Man-Made River and airport and road construction," state ministries will be "abolished" the Libyan leader said.
The 37-billion-dollar a year budget allocated to the errant ministries should instead "be shared among the people so that they can manage their affairs themselves," Gaddafi told the session of the General People's Congress in the coastal city of Sirte.
The Great Man-Made River is one of the Libyan leader's flagship projects intended to bring water from underground aquifers deep in the Sahara to the Mediterranean coast where the overwhelming majority of the country's population live.
The regime has also set great store by a string of major infrastructure projects it announced last year in the run-up to celebrations for the anniversary on September 1 of Gaddafi's 1969 seizure of power from a Western-backed monarchy.
Gaddafi has long opposed conventional ideas of government bureacracy, unveiling in 1977 what he called the Socialist People's Libyan Arab Jamahiriya, a state of the masses in which his only formal function was as revolutionary guide.
His moves on Sunday came on the anniversary of the creation of the Jamahiriya.
Güncelleme Tarihi: 03 Mart 2008, 15:25