Feb 28, 2013, 11.59 AM IST
The planned expenditure for FY14 is expected to be 29.4% more than FY13 revised estimates at Rs 5.5 lakh crore, P Chidambaran said while presenting UPA's last Budget before general elections.
He further added that FY13 plan expenditure is likely to cut Rs 3.9 lakh crore versus Budget estimates of Rs 5.9 lakh crore.
Chidambaram admits the FY13 plan expenditure was "too ambitious". He added that the government has no choice but to rationalise spending.
Nomura said earlier that the credibility of Chidambaram's budget would depend on the government's underlying assumptions on growth, asset sales and subsidies.
Some government economic estimates in the past have proven wildly over-optimistic. In the 2012-13 budget for example, the government predicted the economy would grow at 7.6 percent, sharply higher than the 5 percent that is now forecast.
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