Russia's January budget deficit stood at 0.2% of gross domestic product (GDP), more than five times smaller than the same month of 2023, the finance ministry said on Wednesday, as revenues jumped by 76.6% and spending eased.

Moscow expects budget revenues and expenditure to sharply increase this year. The ministry is planning to spend 36.7 trillion roubles ($402.9 billion) over the year, according to its budget plan, and attract 35.1 trillion in revenues as it records a deficit of 0.9% of GDP for 2024.

Russia has been funnelling ever more resources towards its military and the defence industry since its February 2022 invasion of Ukraine. Spending on defence and security combined is set to reach around 40% of all budget expenditure this year.

Expenditure in January was 13.2% lower than the same month last year, at 2.7 trillion roubles. In January 2023, Russia had recorded a deficit of 1.65 trillion roubles, or 1% of GDP.

Heavy spending in early 2023 left many analysts predicting a huge budget deficit last year, but high oil prices and Russia's success in evading Western efforts to significantly curb its energy revenues boosted Moscow's prospects.

Russia's main sources of covering its budget deficit are domestic borrowing and the National Wealth Fund (NWF), Moscow's rainy day stash of accumulated energy revenues. ($1 = 91.1000 roubles) (Reporting by Darya Korsunskaya and Alexander Marrow; Editing by Andrew Heavens and Miral Fahmy)