The cabinet on Tuesday approved the two billion baht budget for compensation to all victims of political violence, Prime Minister Yingluck Shinawatra said.
Ms Yingluck said the "healing budget" will be divided into two parts - funds to deal with the mental health of the victims and money to shoulder the victims' costs.
All political groups will receive the same compensation and another committee will consider providing assistance and compensation for victims of southern violence based on the same principle as the political violence victims, she said.
The Ministry of Foreign Affairs will be responsible for contacting relatives of foreigners killed during the political unrest to inform them about the compensation, Ms Yingluck said.
The premier said the government will offer US$250,000 in compensation to the family of the Japanese cameraman shot dead during a crackdown on red-shirt protesters in Bangkok two years ago.
Ms Yingluck said the government will send a letter of condolence to the family of Hiroyuki Muramoto, a Reuters cameraman.
"The letter is issued on behalf of the Thai prime minister to Hiroyuki's family and to inform them of the compensation they are entitled to receive like others," she said.
"I will not have enough time to meet with his family due to my busy itinerary," she said when asked if she would personally see the late journalist's relatives while on a state visit to Japan this week.
Democrat MP for Rayong Sathit Pitutecha said on Thursday he will request the Administrative Court to issue an injunction to suspend the payment of compensation to all victims of political violence.
"I see that the cabinet's resolution is not in line with legal procecures and it's not fair to all sides," Mr Sathit said.
"The prime minister, cabinet ministers and goverment officials should not rush into carrying out former prime minister Thaksin Shinawatra's order by paying compensation to their associates without having regulations to support it because they might violate Section 157 of the Criminal Code [for negligence of duty]."