Remarks from the Thai government suggest a keen aspiration for a 5% annual boost to the GDP. This optimism was shared during a tour of the Northeast stop-off, Khon Kaen province. According to data reported by the National Economic and Social Development Council, Thailand’s GDP growth was a modest 1.8% in this year’s second quarter. A slight decline from the 2.6% recorded in the first quarter, it also fell beneath the predicted 3.1% second-quarter growth.
Finance Minister Srettha outlined a strategic policy, stating his government’s intention to refrain from implementing the rice-pledging or price-guarantee scheme, a popular approach under the previous administration. Exceptions may be made in cases of a natural disaster. The minister argued that such subsidies lead to discrepancies in global market prices, contradicting economic and financial principles. “Our focus lies in increasing the net income for farmers… Thus, no need arises for price-guarantee or rice-pledging schemes,” Srettha explained.
Addressing the issue of farmers’ debt moratorium, Srettha confirmed the implementation of the policy in conjunction with other tactics designed to enhance farmers’ income. Despite 13 debt moratoriums put into effect over the past nine years, farmers’ income has not improved significantly. Necessary action has to be taken with the help of initiatives aimed at curtailing costs and promoting a higher income yield, he mentioned during a meeting at the Ubol Ratana Dam in Khon Kaen.
The Northeastern region’s persistent plight of drought motivated Srettha to propose a durable solution in the form of a lengthy pipeline that will channel water from four rivers in the Northeast to the dam. Srettha spoke of long-term measures as the preferred approach rather than short-term ones. The project is expected to balance the drought problem in the long run.
Wrapping up the day in Khon Kaen, Srettha and his company moved on to the neighbouring Udon Thani province. A park visit awaited in Udon Thani, the selected venue for the International Horticultural Expo 2026. However, a looming budget augmentation caught Srettha’s attention. The expenditure for the event was shooting from its initial allocation of 2.5 billion baht up to a worrying 5.5 billion baht. This posed an obstacle with the government’s limited resources.
Fresh from Udon Thani, Srettha continued in the Northeast, now setting off for Nong Khai province along the Laotian border. Aboard a second-class train, including esteemed passengers such as Deputy PM and Commerce Minister Phumtham Wechayachai, Srettha discussed potential procedures for exporting Thai goods to China by train. The State Railway of Thailand governor, Nirut Maneephan, informed Srettha of plans to extend the existing train tracks to Nong Khai, hence opening up an exciting transportation gateway between Thailand and China via Laos.
Before leaving Nong Khai, Srettha made a point to review the site for an upcoming goods distribution centre. A one-stop service, the project has a 193 rai (31 hectares) layout. The projected investment totals 5.4 billion baht.
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