Riyadh - The oil-rich Gulf state of Saudi Arabia recorded its highest-ever budget surplus in 2008, but expects a deficit in 2009 as oil prices fall, a Saudi-owned television channel reported on Monday.

The kingdom posted a surplus of 590 billion riyals (149 billion dollars). Its revenue reached 1.1 trillion riyals, the al-Arabiya channel reported. Around 90 per cent of Saudi revenue came from oil.

The country, the world's largest oil exporter, had expected a surplus of only 40 billion riyals for 2008. It expects a deficit of 65 billion riyals next year, after a decrease in oil prices, the report said.

Oil prices fell under 40 dollars per barrel this month, near the lowest in four years, despite production cuts from the Organization of the Petroleum Exporting Countries (OPEC). (dpa)