FY13 fiscal gap lower at 5 percent of GDP vs revised estimate: sources

NEW DELHI (Reuters) - India's fiscal deficit is expected to be at around 5 percent of gross domestic product, lower than the downward revised estimate of 5.2 percent for the 2012/13 fiscal year that ended in March, two government sources said on Thursday.

The government has cut its expenditure by a further 200 billion rupees in March which has helped in cutting the fiscal deficit, the officials said, adding the government has started the new fiscal year with a cash balance of one trillion rupees.

Also, indirect tax collection has been higher-than-expected, offsetting a shortfall in direct tax recepits in 2012/13, they added.

($1 = 54.4350 rupees)

(Reporting by Manoj Kumar and Rajesh Kumar Singh; Editing by Sunil Nair)