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, according to budget amendments submitted by the government to parliament.

The previous estimate was 1.595 trillion roubles or 0.9% of GDP.

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 Welfare Fund.

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 Mark Trevelyan and Olzhas Auyezov; Editing by Toby Chopra)