She was expected to propose cutting 500,000 government contractors for a savings of up to $18 billion a year.
In an interview with The Associated Press, Clinton said the government needed to become more consumer-friendly, cost-efficient and transparent in the way it does business.
Among other things, Clinton said she would propose a Web site that would track the effectiveness of government agencies and start a "corporate subsidy information service" to determine whether such subsidies benefited citizens and not just the corporations that receive them.
She said she would limit the Bush administration practice of hiring private companies to perform government functions and would work to boost the performance of key agencies, such as the Federal Emergency Management Agency, which she said performed well during her husband's White House years.
Her proposals echoed "Reinventing Government," or REGO, a program launched during her husband's administration and run by Vice President Al Gore. REGO was credited with saving taxpayers more than $136 billion over eight years by cutting the federal work force, trimming layers of management and cutting subsidies for items like mohair and wool.