The government plans to enact stringent laws to exercise disciplinary control over all civil servants responsible for developing the digital economy.
"The soon-to-be-established National Digital Economy Committee (NDEC) will be given the authority to punish any civil servant who fails to comply with committee orders or directives regarding digital economy policy," said Sittichai Pokaiya-udom, a member of the working committee responsible for transforming the country into a digital economy.
The penalties will be based on Section 157 of the Criminal Code, which stipulates that public officers charged with misconduct or dereliction of duty that causes damage to the state can be imprisoned.
"The measure is required to ensure unified action by state agencies," Mr Sittichai said.
"It is also crucial to the success of the digital economy's development."
He said the Council of State has apparently changed its mind on inviting Prime Minister Prayut Chan-o-cha to chair the NDEC as initially planned, after the council earlier wanted the committee to be chaired by a deputy prime minister instead.
"The revision will make the committee become a more powerful player," Mr Sittichai said.
The cabinet recently approved 10 of the digital economy draft bills including the NDEC bill.
The Council of State is on the verge of amending the core legislative structure of the NDEC draft bill after the bill was criticised by academics and the public.