"Fiscal deficit will be restricted at 4.7 per cent, but it will happen by credible means. The realisation from spectrum auction will help better the number," the official told PTI.
The government had budgeted to bring down fiscal deficit to 4.8 per cent of GDP in the current financial year, from 4.9 per cent in 2012-13.
"We have drawn a redline and credit rating agencies are satisfied by our number," the official said.
As much as Rs 56,190 crore worth bids have already come in from the ongoing auction of 2G radiowaves and the figure is likely to go up further.
The government in its budget had estimated to collect only Rs 40,000 crore from the spectrum auction.
Even as the government is still far from meeting its disinvestment target of Rs 40,000 crore for fiscal ending March 31, about Rs 19,000 crore dividend from Coal India is expected to make up for the shortfall.
The government has already curtailed its borrowing plan for the current fiscal by Rs 15,000 crore in view of the comfortable liquidity position.
The total market borrowing by the government would now come down to Rs 5.64 lakh crore, from Rs 5.79 lakh crore as envisaged in the 2013-14 Budget. The net borrowing, which is a reflection of fiscal deficit, as per the budget was Rs 4.84 lakh crore.
Government borrows funds by issuing dated securities to finance the fiscal deficit.
In the April-December period, fiscal deficit had touched 95.2 per cent of the budget estimates.