Pheu Thai's THB10,000 handout will not be in digital coin form: Prommin
Prommin Lertsuridej, chair of Pheu Thai’s economic affairs committee, insists that the campaign policy of handing out 10,000 baht digitally is safe and does not involve digital currency as feared.
He was speaking in a Kom Chad Luek television interview on Monday. The policy, unveiled on April 5 by Pheu Thai’s PM candidate Srettha Thavisin, has been hit with a lot of criticism.
Critics allege that Srettha wants to hand out digital coins worth 5,000 baht to each Thai to benefit his business, as he also owns a digital coin trading venture. Other critics point out that the next government would not have enough funds to finance the scheme.
In the interview, Prommin denied the scheme involved any digital currency, adding that the party would simply remit money digitally to 50 million Thais who are at least 16 years old.
He said the scheme would require about 500 billion baht, and this money would stimulate the economy once it has been circulated two or three times.
He explained that 260 billion would come from raised taxes as calculated by the party’s financial experts. And another 100 billion baht would come from VAT returns, he said.
Prommin added that recipients of the money will be required to spend it in registered shops within a 4-kilometre radius of their homes.
“See, we’ll have earned 100 billion baht just by setting a 500 billion baht budget for the scheme,” he added.
He said a Pheu Thai government would also be able to shuffle funds from redundant projects to raise another 100 billion baht for the project.
“We have planned for 460 billion baht for the project. At this point, it will not be difficult to find the remaining 40 billion baht from the national budget,” Prommin added.
He said his economic team has yet to set up a system for the recipients to spend the money at registered shops. They may be able to spend the money by showing their ID cards or via an application.
Prommin added that recipients will not be required to register, but the money will be sent to them based on their ID cards. A Blockchain system will be used to ensure the money is spent within their neighbourhoods.
He added that this handout will not push up inflation because the same measure has been used in many countries to revive their economies after Covid.
