The Governor-General has laid out the Government's plan on behalf of the Prime Minister in the official state opening of Parliament.
In the Speech from the Throne, Sir Jerry Mateparae said the Government had committed to a return to surplus, and to reduce core Crown debt to 20 percent of GDP by 2020.
He confirmed there will be $1 billion available for new spending each year, which, as well as increasing government expenditure, could be used for tax cuts and debt repayment.
The speech also confirms a number of pre-election promises, including free doctor visits and prescriptions for the children under 13, and an extension to paid parental leave by 2016.
And a new cancer treatment target, under which 90 percent of patients should receive their first cancer treatment within 62 days of being referred by their GP.
There are also commitments to continue to rebuild Canterbury, pursue free trade deals and start a review of New Zealand's intelligence and security agencies by the end of June next year.
In his speech Sir Jerry said the Government will focus on housing this term, with the creation of more special housing areas, access to better quality state housing and the introduction of a new first home grant through Kiwisaver.
He said the Government will continue to encourage petroleum and mineral exploration, invest in regional water infrastructure, progress Treaty of Waitangi Settlements and encourage Maori economic development.
The first legislative priorities will be to amend the Resource Management Act and employment law.
Sir Jerry noted New Zealand's election to the United Nations Security Council, saying the New Zealand government will respond in a responsible way to the threat posed by Islamic State (IS).
The speech also confirms the New Zealand public will be asked to vote on whether or not they want a change to the national flag this term.
Prime Minister John Key and Labour's Annette King wasted no time this afternoon before trading blows in the first official parliamentary sitting session, which followed Sir Jerry's speech.
In the debate in reply, Ms King warned the Government about taking New Zealand to war against Islamic State.
She told the House that even with fewer numbers, Labour intended to hold this government to account.
Mr Key spent the first part of his speech ridiculing Labour over its leadership woes before giving more detail about the Government's agenda, including reform of the Resource Management Act.
During the earlier ceremony on the forecourt of Parliament, there was also a Flypast of three NH90 helicopters, followed by three replica vintage aircraft provided by Sir Peter Jackson.
The last flypast of this kind was 40 years ago - this year it is to mark the centennial of the outbreak of the World War 1 in 1914.