Thailand's military authorities leader said on Friday that an interim government will be formed in September at the latest, offering the most specific timeline yet on a possible transfer of power after last month's coup.

While chairing a budget meeting, General Prayuth Chan-ochathe, chief of the military-run National Council for Peace and Order said that a government will be set up by August, or September at the very latest.

"When ... we have a government, we will move forward. Then the reform council can begin," Prayuth said.

A reform council tasked with instituting political reforms in the deeply divided country will include rivals from Thailand's long-running political conflict, he said.

A temporary constitution will be drafted within three months, Prayuth said, adding it will take at least one year before a new general election can be held.

At the meeting concerning the 2015 national budget, the NCPO chief indicated the rice-pledging scheme, the flagship "populist policy" of the ousted Yingluck government, will not be continued, at least not for now.

He promised to focus on issues such as reducing farmers' costs, establishing seed and fertilizer banks, and promoting farm cooperatives.

A similar rice subsidy program could be revived in the future only if it is designed to benefit only rice growers, Prayuth said.

The Yingluck government started buying rice from farmers at above-market prices in 2011 to shore up rural incomes, fulfilling a campaign pledge by the Pheu Thai Party, which won a parliamentary majority that year. Critics have accused the scheme of breeding corruption and incurring great losses.

The military authorities started to repay farmers indebted under the scheme soon after the May 22 coup, and by late June, more than 800,000 farmers are expected to receive some 92 billion baht ($2.88 billion).

Populist schemes will proceed temporarily only to alleviate people's hardships, Prayuth said.

The army seized power on May 22 in a bloodless coup, overthrowing a government elected by a majority of voters three years ago. Prayuth has justified the coup as a necessary action to restore order after half a year of anti-government protests and political turmoil that left at least 28 people dead and the government paralyzed.

But since taking power, the army appears to be carrying on the fight of the anti-government protesters by mapping out a similar agenda to redraft the constitution and institute political reforms before elections. It has also gone after politicians from the grassroots "Red Shirt" movement that had vowed to take action if there was a coup.

On Thursday, a military court extended the detention of prominent activist Sombat Boonngam-anong for an additional 12 days. He has been held without charges since his arrest June 5, but has been informed that under martial law he faces up to 14 years in prison on possible charges of inciting unrest, violating cyber laws and defying the junta's orders.

Sombat had spearheaded an online campaign calling for people to raise a three-finger salute borrowed from the Hunger Games to show opposition to the coup.

Xinhua-AP