Wellington  - New Zealand's newly elected government Monday signed off on a fast-track programme of legislation to be passed by parliament which includes tax cuts designed to stimulate the economy, Prime Minister John Key said.

Key was talking to reporters shortly before the swearing in of legislators elected in the November 8 poll. His government's detailed programme for the next three years is to be unveiled at Tuesday's official opening of parliament.

Key has promised to fulfil some of his conservative National Party's campaign promises in his first 100 days in office, including passing legislation before Christmas to ensure income tax cuts can take effect on April 1.

He warned on Sunday that more bad news about the economy, which is technically in recession, was coming in the shape of a six-monthly Treasury update which is expected to predict rising unemployment, bigger national debt levels and a soaring budget deficit.

Key said it was not a time to panic, "but nor should we underestimate the challenge we are facing."

Questioned by reporters, Key said he would not follow Australian Prime Minister Kevin Rudd in advising his citizens to "go out and spend the money" when they received their share of the economic stimulus package.

Key said people should be able to make their own choice of using their tax cuts - either spend it, or use it to reduce personal debt.

Other fast-track legislation includes tougher bail laws for people charged with violent offences and extended government funding for drugs to treat breast cancer.

Key's Nationals hold 58 seats in the 122-member parliament and he has formed a minority government supported by the free market ACT party, the Maori Party and the United Future party.

The opposition Labour Party, which had governed for nine years before it was ousted at the election, has 43 seats, the Greens nine and the Progressive Party one. (dpa)