The cabinet has approved economic stimulus measures worth 324.46 billion baht, which includes 40 billion baht in aid for farmers and the already approved investment budget.
Prime Minister Prayut Chan-o-cha said economic indicators had been less than ideal over the past few months in the wake of the sluggish world economy.
The government was trying its best to solve the country's problems systematically, he added.
"We're tackling the issues no government has ever dared touch. If this backfires on us, so be it," he said.
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"We have to keep in mind our problems are deep-rooted and we're trying to address them sustainably," he said.
Deputy Prime Minister MR Pridiyathorn Devakula said 129 billion baht from the 2015 investment budget would be expedited to create jobs through investment projects across all ministries.
Another 23 billion baht from the remaining Thai Khem Kaeng project will be spent on repair projects of the Education Ministry.
Another 147 billion baht will be spent on projects slated to be implemented in the last three months of the year under the expenditure budget.
The cabinet also approved 40 billion baht to help low-income farmers to be paid on Oct 20.
The money will be given to farmers who own their land.
Some 1.8 million households with not more than 15 rai will get one-time aid for production costs at the rate of 1,000 baht a rai while 1.6 million households with more than 15 rai will get 15,000 baht per household.
Some 3.4 million farming households are eligible for the aid. They have already registered as real farmers and have accounts with the Bank for Agriculture and Agricultural Cooperatives.
"This is not a populist policy. It simply helps stimulate the economy and helps farmers to cope with their burden," MR Pridiyathorn said.
The Thai economy has been sluggish over the past few months, with exports contracting by 7.4% in August, the largest decline in 32 months.
Inflation was at 1.75% in September, the lowest level this year, mainly due to the vegetarian season and lower oil prices, the Commerce Ministry reported on Wednesday.
Deputy Commerce permanent secretary Ampawan Pichalai said inflation based on the consumer price index in September was 107.43, up 1.75% year-on-year and down 0.17% from the previous month.
For the first nine months of the year, inflation rose 2.15% year-on-year.
The year-on-year increase was due to increases in food and non-alcoholic drinks (3.85%), primarily meat (5.56%), vegetables (5.36%), condiments (4.98%), fast-food dishes (5.46%) and ready-to-eat food (5.13%). Other categories rose 0.67% on increases of liquor, beer and cigarettes (4.94%), rents (1.44%) and medical costs 1.17%.
The product category of which prices fell is fuel (-1.99%).
"The tame inflation in September was due to energy price restructuring and declining world prices. Meat prices also fell although vegetables offset part of the declines," Ms Ampawan said.
For the latter half of the year, inflation will likely increase 2.05%, with a 2% increase in the third quarter.
For all of 2014, inflation will likely be 2.14%, lower than 2.21% projected earlier.