The Coalition has blown a $3 billion hole in the budget after announcing it would abandon or amend a suite of tax initiatives that would have cracked down on wealthy superannuants, multinationals and those who claim large ''self-education'' expenses.

Announcing the latest measures, Treasurer Joe Hockey said the budget position would deteriorate even further when the mid-year economic and fiscal outlook is released at the end of the year. ''The budget has deteriorated, of course it has. And we are methodically and carefully going through every cupboard,'' he said.

While the mid-year outlook would show the extent to the problems, the May budget would '''offer the solutions'', Mr Hockey said.