By Richard Cowan

MINNEAPOLIS (Reuters) - In her first public appearance since accepting the Republican Party nomination for vice president, Sarah Palin on Thursday promised that she and running mate John McCain will "shake things up" by controlling government spending.

Palin spoke at a lunch with a group of Republican governors and later was to travel to nearby St. Paul, Minnesota, to watch McCain accept the party's presidential nomination.

"If elected, we're going to shake things up and we're going to put government back on the side of the people and I look forward to that," Palin said in a prepared statement that lasted about five minutes.

Flanked by fellow governors from eight other states, Palin said that she vetoed hundreds of millions of dollars of projects and services proposed in Alaska, saying they were not in the public's best interest.

"Senator McCain, he promises to use that power of veto also in defense of the public interest," Palin said, adding, "I can assure him that it works and I will continue to assure him that that power of the veto works."

During the eight years of Republican George W. Bush's presidency, government debt has exploded, as he cut taxes while increasing spending -- much of it on the unpopular war in Iraq.

Both McCain and Democratic presidential candidate Barack Obama have promised to rein in excess federal spending.

Since McCain announced his choice last week of the little-known Palin as his running mate, the first female Republican vice presidential candidate has mostly kept away from reporters.

While a small group of journalists were allowed to listen to Palin's remarks, campaign aides warned that she would not answer any of their questions.

But at the end of the event in the dimly lit exhibit space inside The Museum of Russian Art where the lunch was held, she made a quip to an Alaska broadcaster about being able to promote Alaska while campaigning nationally for vice president.

On the heels of her speech to the convention on Wednesday, Palin issued a fundraising appeal, saying "As recent polls indicate, this year's election will be close. In tight contests, voter turnout is absolutely critical." The fundraising letter noted that Obama's campaign was "spending unprecedented amounts of money on get-out-the-vote drives."

McCain and Palin will soon have to stop private fundraising efforts as their campaigns will rely on public funds.

Palin, who has been governor of Alaska for less than two years, focused on her fiscal restraint and energy development as governor. She has been criticized by Democratic opponents who say she worked hard as governor to snare federal "pork barrel" funds for Alaska, the kind of money that Palin now criticizes.