Russia's budget deficit narrowed in May to 0.5% of gross domestic product (GDP) from 0.8% in April, the finance ministry said on Monday, supported by higher revenues as Moscow sharply raises expenditure.

Revenues for the first five months of the year were 45.5% higher than the same period of 2023, the ministry said, citing preliminary data. Oil and gas revenues were 73.5% higher and non-oil and gas revenues were up 34.1%, supported by higher than planned tax receipts.

In early 2023, Western sanctions over the conflict in Ukraine that included an oil price cap and oil embargo squeezed Russia's energy revenues.

Moscow expects budget revenues and expenditure to sharply increase this year. The finance ministry tweaked its budget plan for 2024 earlier this month, now expecting to spend more and see slightly lower energy revenues to leave a full-year deficit of 1.1% of GDP, or 2.12 trillion roubles ($23.81 billion).

The ministry now plans to spend 37.18 trillion roubles over the year and attract 35.06 trillion in revenues. Spending in January-May was 18.9% higher than in the same period of 2023.

The January-May deficit of 983 billion roubles was smaller than for January-April, when it stood at 1.48 trillion roubles. In the first five months of last year, Russia's budget deficit was 3 trillion roubles, or 1.8% of GDP.

($1 = 89.0475 roubles) (Reporting by Darya Korsunskaya and Alexander Marrow; Editing by Mark Potter)