Critics of Pheu Thai’s massive cash transfer pledge are just ‘playing politics’

The plan is legal and Pheu Thai has already explained it to the Election Commission, Srettha said while campaigning in Ratchaburi province.

Criticism of the plan is a “political tactic” rival political parties are using in the run-up to the May 14 general election, said the property tycoon turned politician.

“Pheu Thai is always ready to explain [its policies] to the people,” he added.

The payments will be transferred into digital wallets of every Thai 16 or older next January 1, if Pheu Thai succeeds in forming the next government, Srettha said previously.

The New Year transfer is aimed at stimulating the economy at the local level, Pheu Thai members have said. The money must be spent within six months and within 4 kilometres of each recipient’s registered address. Block-chain technology will be used to ensure the money in the digital wallets is spent in the designated area.
 

Economists, legal experts and politicians have criticised the plan, with many warning its estimated price tag – more than 500 billion baht – could cause a financial burden for the country. Others say the proposed digital wallet scheme may violate the Currency Act.

Former Bank of Thailand governor Tarisa Watanagase has called the plan “‘irresponsible”, saying it will require the government to take out massive loans to fund it.

Former election commissioner Somchai Srisutthiyakorn, who now leads the Thai Liberal Party's strategic team, described the plan as unworkable and illegal.

If money from the government’s fiscal 2024 budget of 3.35 trillion baht is used to send 10,000 baht to 50 million digital wallets, every government agency will have to cut its allocated budget by 15%, Somchai said.

The digital-wallet pledge may also violate the Election Act, which prohibits political parties from promising rewards to voters, he said.

Former finance minister Thirachai Phuvanatnaranubala, a policy adviser to the ruling Palang Pracharath Party, labelled Pheu Thai’s plan a straightforward cash handout, saying the only difference was that electronic coupons will be handed out instead of cash.

Srettha said Pheu Thai remains confident it will win the upcoming election due to the credibility of its policies and candidates.

Asked to comment on results of a recent poll that showed Pheu Thai winning fewer than 200 MP seats, Srettha said he pays attention to all polls.

“The result will not discourage us, we will continue with our campaigning,” he added.

Pheu Thai has stressed to voters that it needs to win the election by a landslide to form the next government.

When asked to comment on results of a survey showing the two main oppositions parties – Pheu Thai and Move Forward – in the lead, Srettha said his party will not let its guard down despite the encouraging result.

Pheu Thai does not consider Move Forward to be a competitor because its main foe is poverty, he added.

Srettha stepped down as chief executive and president of property giant Sansiri Plc in early April, just in time for the registration of prime ministerial candidates for the next election.