There are very strong similarities with the Swiss Cantonal system >https://liberty-intl.org/2000/03/12/the-swiss-cantonal-system-a-model-democracy/

The crucial point is that these "layers" also vote on their own taxation. The result is an extremely efficient state with a (by European standards) a low level of taxation.

The small and very efficient civil servant corps are paid more than in the corporate sector, so only the best and brightest are selected.