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B Day: Finance Minister Mathias Cormann at Parliament House. Photo: Alex Ellinghausen

Senior Liberals say the federal government is bracing for a backlash when voters see the full scale of cutbacks and broken promises inthe budget.

The prediction is fuelling a febrile mood on the Coalition backbench and suggests the nation is in for a harsh budget aimed at driving the balance sheet back to the black more quickly than previously indicated perhaps within as little as four to five years.

Federal Director of the Liberal Party: Brian Loughnane. Photo: Alex Ellinghausen

Business leaders say anything longer than that time frame would cause some to conclude the government lacked the "spine" to match its strong rhetoric.

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"They've talked the talk, they sure as hell better walk the walk as well," said one figure.

There is speculation that thousands of apprentices will lose staged Commonwealth incentive payments worth $5500 in total as the government argues a recent pay increase and its $20,000 interest-free loans provide enough help.

Illustration: Ron Tandberg.

Fairfax Media also understands the government will increase the interest rate on student loans to help ease the impact on the budget from increased higher education spending.

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Liberals brace for budget backlash