The Deputy PM has said the Coalition made an error by failing to spend enough on big infrastructure projects when it first came to office.
Touted as a 'full, frank and unvarnished' assessment of the Coalition's progress, today's mid-term review has been dismissed by Labour.
The Coalition has published a 119-page report showing the progress made on the 399 pledges taken together in 2010. Not an easy read.
The Justice Secretary Chris Grayling has said that his remarks about scrapping the Human Rights Act were not off-message, despite David Cameron saying there would be no "lurch to the right" in the Conservative Party.
Mr Grayling said: "What I've set out in the last few days is the same approach that I set out at the party conference last year.
"The Conservative Party will go in to the next election with a plan to tackle the frustrations on human rights, which are shared by people across our society - not by those on the right but the public as a whole."
His remarks come as cracks over immigration and the Human Rights Act appear to be splitting the party after the poor Eastleigh by-election results, which saw the Conservative fall to third place behind UKIP.
The former Conservative Cabinet minister Ken Clarke has warned David Cameron that any attempt to imitate UKIP will "drive moderate people to stick with the Liberal Democrats", adding: "I can't think of a more certain way to lose the general election than to go for a lurch to the right."
The now Minister Without Portfolio went on to say that talk of the Human Rights Act being scrapped was not something he recognised as government policy, or "any policy likely to be adopted by a Conservative Party that I can recognise."
David Cameron is set to attempt to calm Conservative nerves with a major speech on the economy on Thursday.
Downing Street aides said it will aim to drive home the Prime Minister's message on the need to stick to the course on economic policy.
Ministers have been voicing their opposition to any potential cuts to their departmental spending ahead of the Budget later this month.
The Lib Dem Business Secretary Vince Cable has told ITV News that the Coalition would run more smoothly if the Prime Minister resisted efforts to move the Conservative Party further to the right.
Vince Cable said: "It would certainly help the workings of the coalition if he remained in a moderate, central position."
Nick Clegg's comments that the Coalition had made a mistake by not spending enough on infrastructure came ahead of the latest growth figures, which will be announced today.
He said the figures will reveal what happened in the last three months of 2012 are likely to be "considerably weaker" than over the summer.
If the GDP figures are poor tomorrow morning, Nick Clegg's admission could be deeply unhelpful for ministers trying to defend the Government's record.
Shadow Chief Secretary to the Treasury Rachel Reeves has responded to Nick Clegg’s admission that the Government cut infrastructure spending too deeply when it got into office:
This is the first admission that this Government has made serious mistakes on the economy.
But the real question is what Nick Clegg’s Government is going to do about it.
We have urged Ministers to bring forward infrastructure investment and build thousands more homes, but they have refused to listen.
Nick Clegg also claims he wants to put money into the pockets of people on middle and low incomes.
So he should now admit that the VAT rise was a mistake and cancel the plan to cut tax credits for working families on modest incomes on the day millionaires get a tax cut.
The Coalition today released a Mid-Term audit showing the progress made by the Government has been dismissed by the Labour party as a "cover-up" as it made no mention of the double-dip recession or missed borrowing targets, and glossed over issues like NHS reform and tax cuts for top earners.
Political Correspondent Romilly Weeks reports: