Deputy Prime Minister Phumtham Wechayachai downplayed concerns about a power vacuum pending the formation of a new government.
"There is no power vacuum. All coalition parties are working together to address the problems facing the country," he said on Thursday.
Mr Phumtham was responding to private sector calls for a new government to be formed quickly so that planned measures to stimulate the economy could continue uninterrupted.
He said he was serving as the acting prime minister with full powers to transfer government officials, dissolve the House and declare martial law. "But I will not exercise such powers. I only focus on tackling people's problems," Mr Phumtham said.
He denied reports that he would become the new defence minister, a post held by Sutin Klungsang in the previous administration.
Prommin Lertsuridej, the PM's secretary-general, said all coalition allies, including the Palang Pracharath Party (PPRP), have submitted their lists of ministerial candidates, and the next step is to conduct thorough background checks, which should not take more than two weeks.
He refused to comment on reports that the number of nominations for cabinet posts submitted by the PPRP has exceeded its quota of four.
Dr Prommin also refused to be drawn on whether the opposition Democrat Party had submitted its list of ministerial nominations, following reports that the Democrats are being courted by PPRP secretary-general Thamanat Prompow to join the new government.
According to various sources, Capt Thamanat, who serves as the caretaker agriculture and cooperatives minister, met Democrat Party leader Chalermchai Sri-on on Tuesday to approach the Democrats following a conflict with PPRP leader Prawit Wongsuwon after Capt Thamanat was excluded from the list of nominees for cabinet posts.
In return, Capt Thamanat offered two cabinet posts under the PPRP's quota to the Democrat Party, the sources said.
Capt Thamanat has been excluded from the PPRP's list of ministerial nominations as he may be deemed unfit to hold a cabinet post given his conviction and incarceration for a drug-related offence in Australia in the 1990s, according to the sources.
Dech-it Khaothong, the Democrat Party's secretary-general, said the party will hold a meeting to decide whether it will join the new government led by Pheu Thai. "It depends on the party's resolution," he said.
Asked whether the Democrats were willing to abandon their ideologies and kiss and make up with Pheu Thai, its long-standing political rival, Mr Dech-it said, "It is time to reset the country. Rivalry and hatred from the past should not be carried over."
Dr Prommin previously said public independent bodies would be asked to assist the secretariat in verifying the qualifications of candidates for cabinet positions.
Following ex-PM's Srettha Thavisin's dismissal, background checks are anticipated. Few would relish a repeat of what happened to Mr Srettha, who was booted out after appointing a person with a criminal record to the cabinet.
The candidates will be screened to ensure they do not hold shares in companies or assets that would conflict with legal or ethical requirements for holding a government position, or have past criminal records, Dr Prommin said.
