Budget 2013-14: FinMin likely to prune FY13 expenditure by 28%: Sources

Finance minister has been reiterating that the 5.3 percent fiscal deficit target will be met. CNBC-TV18's Akanksha Sethi gives in details on how it is going to be done.

It has been learnt from the sources that there is likely to be a cut of Rs 1.5 lakh crore in plan expenditure. Plan expenditure for this year was at Rs 5.21 lakh crore, so that is almost a 30 percent cut. The finance ministry is putting in place stringent guidelines for different ministry saying that all utilisation certificates for a particular scheme have to be in place before funds are released and therefore the finance ministry is not releasing funds easily.

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Considering the deficit figures this year, it is likely to be Rs 30 crore short on the spectrum front and was estimated at Rs 40,000 crore. Disinvestment is likely to be met at about Rs 26,000 crore versus Rs 30,000 crore which was estimated.

The oil subsidy is likely to be overshot by about Rs 50,000 crore. Rs 30,000 crore has already been promised to oil marketing companies (OMCs), the finance ministry is likely to give another Rs 20,000 crore. If one looks at the numbers along with this cut in plan expenditure they will meet 5.3 percent fiscal deficit target and could be lower. The government may reduce the borrowing for this fiscal if that happens.