Fascism is not just "expanding the size of the state". That's just incredibly naive, bordering on denialism. Substitute "the State" with "il Duce" or "der Fuhrer" in the statement you quoted. That's the true meaning behind the statement -- it's propaganda. You really don't need to take the words of notorious propagandists and liars at face value, especially on a subject that's been studied for almost 100 years now.
Mussolini and Hitler did not care about empowering "the State" for its own sake. The State was simply a vehicle to exercise a particular racial and/or political ideology and to gain personal power. If they could've excised state apparatuses and achieved power in some other way, they would've. Indeed, that's exactly what both dictators (though more so Hitler) did once they found the appropriate political leverage to do so. Everything is subordinate not to the State, but to the Fuhrer. The State itself was subordinate to the Fuhrer. You only need look at Hitler's public actions leading up to the war, not to mention the private memoranda, letters, and other documents, to see that. How many times did Hitler risk the complete destruction or occupation of Germany by the Versailles powers? How many times did he exclaim that if he failed, Germany would fail, and would deserve it? Hitler did not care about the State, he cared about his own personal power and legacy and maintaining the facade at all costs.