 Thaksin Shinawatra chaired the meeting in the south |
The Thai government has agreed a $300m aid package for the predominantly Muslim areas in the south of the country under martial law. A cabinet meeting specially convened in the region approved a range of infrastructure projects, loans and tax benefits for the three provinces.
Martial law was imposed following an upsurge in violence in January.
About 50 people, including soldiers, police and officials, have been killed this year.
Most of the money will be used for improving facilities like electricity, communications and schools.
Some will also go towards the cost of improving security.
But the Cabinet decided, at the meeting in the southern town of Pattani, to retain martial law in the south for now.
"I would like to urge the people to be patient for a little longer. When things go back to normal, martial law will be lifted," said the Thai prime minister Thaksin Shinawatra.
Shortly before the cabinet met, a soldier in the region was shot dead.
Sergeant Adinan Thatiwarakorn was riding his motorbike to work in the province of Yala when he was shot in the head by two men.
The government has blamed the violence both on Muslim militants and organised crime, but it believes the relative poverty of the region - where inhabitants are predominantly Muslim - is a significant factor.
As well as the approval of the $300m, the Cabinet also earmarked $481m for social and economic development projects in the area over the next three years, but it was agreed that the amount would have to be approved at a later date.
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