A large boost in funding for the country's intelligence agencies will help combat threats including the Islamic State and cyber-attacks.
The Security Intelligence Service (SIS) and the Government Communications Security Bureau (GCSB) will each get a funding boost of $20 million over four years.
The bulk of the new money would go towards recruiting and retaining staff, information technology, and vetting services, SIS and GCSB Minister Christopher Finlayson said.
The boost in funding comes only weeks before the start of a wide-ranging review into the agencies headed by former Deputy Prime Minister Sir Michael Cullen and lawyer Dame Patsy Reddy.
Green Party co-leader Metiria Turei said extra funding should not be awarded until that review and other inquiries had been completed.
"Putting $20 million each into these agencies right now is the wrong decision, and it is a waste of money."
Both the domestic intelligence agency the SIS and GCSB, with its foreign intelligence mandate, have come under intense scrutiny after a series of revelations and allegations.
Cheryl Gwyn, who as the Inspector General of Security and Intelligence and Security is responsible for independent oversight of both agencies, announced inquiries into the activities of the GCSB.
They are linked to claims the agency spied on foreign diplomats competing against Trade Minister Tim Groser to lead the World Trade Organisation, and allegations it conducts surveillance on Pacific nations, including New Zealanders living and working in the Pacific.
In announcing the increased funding, Mr Finlayson said national security was something that affected all New Zealanders.
"The National-led Government is focused on managing New Zealand's evolving security environment and on addressing responsibly the risks that the rapid rise of Isil presents locally, regionally and internationally," Mr Finlayson said.
Budget documents show the GCSB was given an appropriation of $20.47 million in 2014/15, above its estimated budget of $74.717 million.
Other information is not provided other than that the funding boost was "limited to the operating and investing activities" of the agency.
In a statement, a spokeswoman for Mr Finlayson said he did not comment on the agencies' specific expenditure as this might disclose operational capabilities.