The Election Commission (EC) has ordered the Pheu Thai Party to clarify the source of finance for its policy of giving away 10,000 baht to everyone aged 16 and older, according to a source at the agency.
EC secretary-general Sawaeng Boonmee said on Saturday that parties which have policies involving budget spending must provide details to the EC within seven days as required by the law. The EC did not single any particular party out for a warning, he added.
The move comes as Pheu Thai unveiled campaign policies involving cash handouts to woo voters ahead of the May 14 general election.
Pheu Thai has informed the EC of its campaign policies, including the 10,000-baht "digital money" giveaway, as required by Section 57 of the law on parties.
However, a source said it has yet to spell out how much money will be needed or where it will come from, which are also required under the law.
The main opposition party dismissed criticism the populist policy is too extreme, saying it isn't populist at all and is actually part of the party's economic stimulus efforts.
Pheu Thai said the policy can be implemented as soon as Jan 1 next year to replace the current state welfare card if it becomes the new government.
As for sources of funding, the party said the money would come mainly from an expected rise in tax revenue and budget funds reallocated from "unnecessary" projects.
On Friday, Srettha Thavisin, a prime ministerial candidate for Pheu Thai, led the party's explanation of the policy, following negative remarks about the scheme.
Some netizens have asked where the money is coming from and wondered about the effect on the country's debt levels.
He said the 10,000 baht is aimed at stimulating spending in communities in the first six months, with the help of blockchain technology that will ensure the money given is spent within a 4-kilometre radius to spur local economic activity.
Mr Srettha said it will help GDP grow by at least 5% within four years. Six months is normally the average period for most small and medium enterprises to plan their stocks in advance.
At the same time, the 4km radius is imposed to discourage people from travelling long distances to shop only at large department stores in city areas.
The 10,000 baht is to be a one-time handout, which is expected to help boost the government's revenue from collecting corporate taxes from shops whose sales will likely increase as a result, he said.
The tax revenue from this project alone is estimated to bring in 100 billion baht, while the budget required to fund the project is approximately 500 billion baht, he said.
He dismissed calls to slash the military budget and divert the money to fund this project.
The government's overall revenue is also estimated to increase in this fiscal year by about 260 billion baht, said Prommin Lertsuridej, chief of Pheu Thai's team working on the party's policies and economic affairs committee, citing various state agencies.
Under the 10,000-baht project, every Thai who is 16 years of age and older will have a new savings bank account and a digital wallet which will be connected to his or her ID.
The rest of the funding will be diverted from projects whose budget allocation is no longer needed, Mr Prommin said.
However, Prime Minister Prayut Chan-o-cha warned on Friday that Pheu Thai's cash handout policy could bring the country to its knees unless it is implemented carefully.
"A digital currency is not physically tangible. Some countries and banks [using digital money] have collapsed. We must be careful.
"Real money is needed for spending. We need to consider whether the money in state coffers is sufficient [to finance policies].
"If not, there will be a risk," Gen Prayut said.
Speaking during a campaign in Nan on Saturday, Mr Srettha said Gen Prayut did not understand what Pheu Thai is doing and that he should study the policy carefully before commenting.
He insisted the source of funding for the 10,000-baht policy can be clarified and said that if Pheu Thai can form a government after the next poll, it can collect more tax revenue and manage budget allocations to finance the policy.
