In fact the government here in the UK has extended its surveillance operations since last year in two ways.

Firstly, it has run a successful pilot program in part of London where they have very extensive closed circuit TV camera coverage. They use software that can match the face of an individual they are interested in, and alert the operator.
Some people are wanted by the police, some are under suspicion (e.g. possible terrorists), but some are just 'individuals that the police are interested in'. Even more bizarre is the fact that the actual system is run by an outside organisation not directly under government control.

Secondly, it has updated the large number of cameras that it has which cover most of the major roads here. These now automatically scan and read in every number plate of each car that passes, together with its speed. This is used to automatically issue speeding tickets (by linking to the government database on car owners), and to issue summons/fines to anyone who has not paid their yearly registration fee. It can also be used to track stolen vehicles.

The trouble with these sort of measures is that they can be easily exploited by any government (as there is no requirement for any independent judicial input) to spy on any individual they deem to be 'an enemy of the State' (e.g. someone who disagrees with their views on something). I'm sure that the KGB in the old Soviet Union would have loved to have this level of surveillance at their fingertips.

And you thought that the world portrayed in 1984 was just a fantasy?