Government departments face a tough few years and have been told they must lift their performance with no extra funding.
The pressure on them would be constant, Prime Minister John Key said yesterday.
"Most agencies will see no additional funding for several years," he said in his speech to Parliament.
"They will therefore need to make enduring and significant changes to the way they operate, including reorganising their back office administrative functions, making better use of technology, exploring innovative options for delivering services and sharing support services with other government agencies."
Mr Key said the savings drive that began last year would continue while stronger performance was demanded.
"We began last year by capping core government administration and by conducting a line-by-line review of expenditure as part of the 2009 budget," he said.
"That review identified a total of more than $2 billion in spending over four years that was redirected to frontline services.
"That was not a one-off exercise."