The flood that has killed at least 166 people in northern Thailand is set to be worsened by tropical storm Haitang, Thai Meteorological Department said late Tuesday.

The storm is expected to reach the northeastern provinces of Mukdahan and Amnat Charoen, bringing torrential rains and strong wind to most parts of north Thailand, according to a warning posted on the deparment's official website.

About 38 provinces in northern Thailand are likely to have flash floods in the next two days. Waves of two to four meters high are expected in the Andaman Sea and the upper Gulf of Thailand. All ships should proceed with caution and small boats must keep ashore from Sept. 27 to 29, it added.

Continuing downpours are diminishing government flood control efforts. The country's Disaster Prevention and Mitigation Department upped flood death toll from last Thursday's 136 to 166 Tuesday noon. But it gave no details about the additional 30 deaths.

In addition, the Royal Irrigation Department said it is planning to release water from the Pasak Jolasid Dam in north Thailand. The amount of water held by the dam is 30 percent more than its capacity.

Level of the flooding Pasak River in Saraburi and Ayutthaya will rise further when the dam releases water.

As part of Thailand's recent flood relief efforts, the cabinet decided on Tuesday to allocate 7.2 billion baht (211 million U.S. dollars) to compensate farmers whose crops were damaged by the floods.

About 351,254 families are expected to benefit from the new compensation programme, Agriculture and Cooperatives Minister Theera Wongsamut said.

But for long-term solutions, the country needs 40 billion baht (1.2 billion U.S. dollars) to coordinate water management efforts, Thaland's Prime Minister Yingluck Shinawatra said on Monday.

"The problem is the lack of an integrated effort. As authorities in one province seek to prevent their province from floods, other provinces are affected," Yingluck said.

She said the government did not know how to drain all the flood water, as it was almost everywhere.