Chancellor George Osborne pledged to cut the budget deficit in a way that "strengthens and unites the country".
In the final day's debate on the Queen's Speech, Mr Osborne said a deficit reduction plan was "unavoidable" after borrowing rocketed under Labour.
But he insisted the task of reducing it and clearing up the inherited "mess" would be conducted in a way that sought to take the whole country along with the Government.
Mr Osborne said the economy had become "deeply unbalanced" under Labour with the country borrowing £156 billion a year.
The Budget would set the "overall envelope for spending" but not allocate spending between departments. This would be tackled by the spending review in the autumn.
"The result of this top-down, centre knows best approach (has been) falling public sector productivity and that large budget deficit. Less for more. And we cannot afford to continue in that direction."
