The Thai cabinet has put aside 28 billion baht (about US$700 million) to rebuild the six southern provinces ravaged by Sunday's tidal waves.
The disaster-relief budget included five billion baht (about US$125 million) in disposable budget, the Bangkok Post reported on Wednesday.
The government has also started a series of tax and loan reprieves to help affected households and business to back to normal.
Thailand's six southwestern coastal provinces, including three favored by international tourists, were hit hard on Sunday by tidal waves triggered by an earthquake which was the strongest in 40 years in Indian Ocean.
Until Wednesday morning, 1,538 death have been confirmed, more than 9,000 people injured and 1,200 still missing.
In the tourist hotspot Phuket Island, only 200 hotels remained open after the powerful waves snapped down electricity poles, tossed cars and rushed through streets lined with shops and hotels.
In other smaller resort islands of Phi Phi and Lak, the situation was even worse, with almost nothing having withstood the disaster.
So far, the authorities have not come out with the exact economic loss caused by the disaster that has claimed more than 60, 000 lives around the region.
However, it is expected that locals will suffer great economic loss due to the suspended tourism business.
Tourism revenue from the three affected provinces of Phuket, Krabi and Phnagnga accounts for one third of the kingdom's total yearly tourism income, according to statistics provided by the Tourism Authority of Thailand.
Local report also estimated the total rebuilding cost to be of 30 billion baht (US$750 million).