In a statement released to Kuwait’s Council of Ministers General Secretariat website, the cabinet said that the package, described as “the project” was in reaction to “the worldwide economic crisis and its reversal of the local economic condition”.

Full details of the content or value of the package were not disclosed. Local media reports suggest that the total funds allocated may be in excess of KD4bn ($13.7bn).

The statement says that the bill aims to promote financial stability and economic growth within the country. It also contains safeguards for government funds and harsher punishment for companies or state officials who produce misleading financial reports.

The bill must now be passed by parliament, which will meet to discuss it in the week ending 12 February.

The oil-rich state has also been hit by plummeting crude oil prices which fell from more than $147 a barrel in July 2008 to the current level of around $40 a barrel.