Saudi Arabia has announced a budget deficit of $12bn this financial year.

It has attributed the revenue shortfall to the downturn in the global economy since the September attacks on the United States.

A balanced budget had been forecast.

It is not clear if the government will seek to close the budget gap with external borrowing, or will seek to raise money domestically.

Revenues from oil sales make up about three-quarters of the kingdom's income, but they've been affected by a sharp drop in oil prices and production levels.

A budget surplus last year was the first for nearly 20 years.

From the newsroom of the BBC World Service