Major plans to reform schools, police, welfare and Britain's political system are at the heart of the coalition government's first Queen's Speech.
But the Queen said cutting the budget deficit and restoring growth would be the new government's "first priority".
The 22 Bills set out in detail what Prime Minister David Cameron hopes to achieve over the next 18 months.
The programme reflects compromises reached by the Conservatives and Lib Dems when they agreed to share power.
Unveiling the proposals in the House of Lords, amid the traditional pomp and pageantry, the Queen said: "My government's legislative programme will be based upon the principles of freedom, fairness and responsibility.
"The first priority is to reduce the deficit and restore economic growth."
It is the 56th time that the Queen has opened a new session of Parliament during her reign - and the first time in 14 years that she has outlined a Conservative-led programme for government, albeit one that has been drawn up in partnership with the Liberal Democrats following their coalition agreement.