Federal coalition MPs have been told next week's mid-year budget review will include a "shocking" deficit and significant spending cuts.
Deputy Liberal leader Julie Bishop told the meeting the most important issue facing the government was the former Labor government's legacy of debt and deficit.
She said the state of the budget would be made clear in the mid-year economic and fiscal outlook, to be released by Treasurer Joe Hockey in Canberra on Tuesday.
It would reveal a "shocking" headline figure, she said.
Prime Minister Tony Abbott told the meeting the government would not let challenges blow it off course from cleaning up Labor's mess and implementing the coalition's policies.
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Mr Abbott said Labor had treated the budget like a "trade union slush fund".
He said the obstruction of legislation to repeal the carbon and mining taxes in the Senate was political and economic vandalism of the highest order by an opposition that lacked ethics and morality.
Mr Abbott said it may seem like trench warfare, but the government expected nothing less from Labor.
A number of MPs raised the issue of support for Holden workers after its decision to stop making cars in Australia from 2017.
One MP called for a "structural adjustment fund" focused on assistance for small and medium-sized businesses impacted by the closure.
Another MP said the motor industry had been treated more favourably than other sectors such as mining, tourism and small business which also deserved support.
Mr Abbott said the government would not run down the street waving a chequebook at unprofitable businesses.
