Pheu Thai makes a strong case for digital wallet scheme

The House of Representatives convened on Wednesday (July 17) to review the Draft Additional Budget Appropriations Act for fiscal 2024, amounting to 122 billion baht, proposed by the Cabinet to cover the funds for the 10,000-baht digital wallet project. The session turned into a heated debate between the opposition, led by the Move Forward and Democrat parties, and the supporting faction of Pheu Thai MPs.

This time, the Pheu Thai government did not allow itself to be cornered or overwhelmed as had been the case during previous parliamentary debates on the 2024 budget bill and in live question sessions.

In the previous two rounds, the opposition had done its homework, delivering knockout blows to Prime Minister Srettha Thavisin and the Pheu Thai Party, who made the scheme a flagship proponent of its election campaign.

They highlighted the project's inconsistencies and criticised it as poorly planned, damaging Pheu Thai's credibility and affecting its popularity.

In previous parliamentary battles, the Pheu Thai-led government used its majority to win. Pheu Thai MPs repeated the narrative that the poor economy rendered the digital wallet project necessary to provide people with spending money but failed to provide supporting data on the project’s benefits.

However, this time, Pheu Thai changed its strategy, refusing to be solely on the defensive.

During the debate, Pheu Thai's academic team meticulously addressed opposition criticisms from Sirikanya Tansakul of Move Forward and Jurin Laksanawisit of the Democrats, among others, responding promptly to every point.

Key to this effort was Julapun Amornvivat, Chiang Mai MP and Deputy Finance Minister from Pheu Thai, who has overseen the digital wallet project from the start. He countered all critical points, including the legal risks of the 122 billion baht budget request, adjustments to project details, and allegations of favouring big businesses over small ones.

“The reason the project hasn't started yet is because we have been listening to the opposition and refining the details to best suit the economic conditions. By taking time to consider the details, we found a way to use the budget law as a source of funding for the project, instead of borrowing money from other agencies,” he told Parliament.

Pheu Thai also deployed experienced MPs to support the debate, not merely reiterating campaign promises but providing explanations for the government's actions, citing the successful policies of the Thaksin Shinawatra era.

They addressed opposition concerns about the economic benefits of the project and defended the government's right to push the digital wallet initiative, emphasising its potential to stimulate the economy.

They also drew on the experience of the Thai Rak Thai Party era under Thaksin Shinawatra, who successfully implemented policies that addressed the people's problems, affirming the belief that the digital wallet top-up project would stimulate the economy and create real money circulation within the system.

Despite efforts to regain trust through parliamentary debates and media communications, the actual impact of the flagship policy remains unclear. Any perceived or actual failures could further damage Pheu Thai's credibility.

The government must therefore swiftly implement the digital wallet policy to prove its efficacy. However, moving quickly could expose legal vulnerabilities, inviting scrutiny from independent bodies like the National Anti-Corruption Commission (NACC), the Election Commission (EC), and the Office of the Auditor-General.

The Srettha government must find ways to avoid repeating the mistakes of the rice-pledging scheme. It remains to be seen whether the digital wallet project will restore Pheu Thai's image or further strengthen the opposition’s position.