The Government is setting aside $80 million over the next four years to help the public service reach its performance targets.
In its first report on the Better Public Service targets set last year, it says good progress is being made towards meeting them.
State Services Minister Jonathan Coleman says there have been improvements in a number of areas.
They include a reduction in the number of people on a benefit for more than 12 months, improved immunisation rates, and an increase in the proportion of 18-year-olds with NCEA Level 2.
Dr Coleman says money is being reallocated from public service budgets to provide $20 million a year for the next four years to help agencies work together and reach their targets.