MOSCOW, July 9 Reuters Russia39;s budget deficit remained flat at 0.5 of gross domestic product GDP in June, the same as in May, as growth in nonoil and gas revenues offset spending, the finance ministry said on Tuesday.

At the same period of last year, the budget deficit was more than twice as large, at 1.4 of GDP, as Western sanctions over the conflict in Ukraine that included an oil price cap and oil embargo squeezed Russia39;s energy revenues in early 2023.

Revenues for the first six months of the year were 38 higher than the same period of 2023, the ministry said, citing preliminary data. Oil and gas revenues were 68.5 higher and nonoil and gas revenues were up 26.6.

The ministry said it saw sustainable positive dynamics in key nonoil and gas revenue sources, including valueadded tax VAT. It said that growth in VAT and other turnover taxes created conditions for a further increase in nonoil and gas revenues later this year.

Moscow expects budget revenues and expenditure to sharply increase this year. The finance ministry tweaked its budget plan for 2024 in early June, now expecting to spend more and see slightly lower energy revenues to leave a fullyear deficit of 1.1 of GDP, or 2.12 trillion roubles 23.81 billion.

The ministry plans to spend 37.18 trillion roubles over the year and attract 35.06 trillion in revenues. Spending in JanuaryJune was 22.3 higher than in the same period of 2023.

Since the launch of what Russia calls a special military operation in…