Russia sees wider 2024 budget deficit as spending grows, energy revenues drop
Adds detail in paragraphs 1, 4-5
June 3 (Reuters) -Russia's finance ministry has raised its estimate of this year's budget deficit to 2.12 trillion roubles ($23.76 billion), or 1.1% of gross domestic product, as Moscow's spending increases andoil and gas revenues drop.
The previous estimate was 1.595 trillion roubles or 0.9% of GDP. The new estimate was published in budget amendments submitted by the government to parliament on Monday.
Russia has heavily increased defence and security spending since launching its full-scale invasion of Ukraine in February 2022, leading to two consecutive annual deficits exceeding 3 trillion roubles, about 2% of GDP. It financed these with internal borrowings and by drawing on the rainy day National WealthFund (NWF).
According to the amendments, the ministry lowered total expected revenues for 2024 by 2.8 billion roubles to 35.06 trillion roubles and increased expected spending by 522 billion roubles to 37.18 trillion roubles.
It also reduced its forecast for additional oil and gas revenues, which the ministry uses to buy foreign currency and replenish the NWF, by 767 billion roubles to 1.05 trillion roubles.
According to ministry estimates, the deficit based on the first four months of this year was running at 1.48 trillion roubles or 0.8% of GDP.
The government last week proposed tax hikes for companies and wealthy individuals that could add an extra $30 billion to next year's budget revenues.
($1 = 89.2275 roubles)
Reporting by Darya Korsunskaya, Writing by Alexander Marrow; Editing by Mark Trevelyan
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