The money will come from the 2015 budget set aside for the purpose while the remaining 2014 budget will be used to prevent droughts.
Six agencies have been assigned to carry out the projects, including soldiers, who have been involved in 105 projects, with 30% progress to date.
The new funds will be used to dig wells in each village or farming area and to clear waterways.
The water management master plan has yet to be completed.
A source also said that NCPO chief Gen Prayuth Chan-ocha supports the idea of setting up a water ministry.