Rising tax revenues will pay for massive cash-transfer pledge: Srettha

The 500-billion-baht campaign pledge can be paid for by increased revenue from tax collection, more careful budget allocation, and cuts to some social-welfare benefits, said the property tycoon-turned-politician.

The policy will “help everyone out of the black hole of poverty”, he said.

The policy has drawn criticism from economists and academics. They have raised questions about how it will be paid for and warned that it will cost taxpayers hundreds of billions of baht.

Pheu Thai has pledged to give 10,000 baht in digital currency to everyone 16 years of age and over if the party returns to power after the May 14 election. The money must be spent at businesses within a four-kilometre radius of each recipient’s registered address.

Pheu Thai’s economic team held a press conference on Friday to defend the policy amidst growing criticism of it, but they were short on specifics.

Srettha said recipients can spend the 10,000 baht they receive on everything except illicit items. He explained that the requirement that the money must be spent within a 4km radius of each recipient’s home aims to stimulate the economy at the local level.

Chakrapong Saengmanee, a member of Pheu Thai’s economic team, said the party should just be trusted because it had proven itself in the past. “We were able to do what we promised. We spent money wisely and we were able to make money,” he said.

Prommin Lertsuridet, head of Pheu Thai’s economic team, said the digital-transfer scheme is intended to boost the economy so that it grows at least 5% per year. Although it is a short-term measure, the money will help recipients “stand up and continue fighting”, he said.

“The 10,000 baht is like resuscitation to help Thais regain consciousness and get strong again,” Prommin said.