As part of any inclusive economic policy, a scheme to help the poor is needed to help keep society functional.
However, the government’s recent subsidy measure to assist the needy with living expenses has come in for criticism, as flawed project design and poor implementation have raised questions about its pragmatism.
Under the scheme, the government transfers 200-300 baht a month to each welfare smart card. Recipients earning under 30,000 baht a year gets a monthly allowance of 300 baht and those with annual earnings of 30,000 baht to 100,000 baht receive 200 baht a month to buy low-priced consumer products at Thong Fah Pracha Rat shops and other designated stores.
Each cardholder also receives 1,500 baht a month for subsidised transport, with 500 baht each for inter-provincial public buses, third-class trains, and local public buses and electric trains.
The restriction on where the registered 11.7 million poor are entitled to shop is seen as the main problem, as it limits them to buy only products selected for sale in those stores.
Adding to the controversy are media reports of a male model suspected of pretending to be poor to receive a welfare card being investigated by the Comptroller-General’s Department.
Tougher Conditions on Horizon
The Finance Ministry is set to tighten conditions for the government’s welfare recipient registration next year by stating that those who make false declarations of financial status will be temporarily suspended from obtaining public assistance.
A man studies conditions for registering at the Government Savings Bank to receive state welfare. PORNPROM SATRABHAYA
The move is an effort to close loopholes exploited by certain individuals to receive welfare benefits, said Suwit Rojanavanich, director-general of the Fiscal Policy Office.
These cases are hard to prove, such as with the male model, making stricter eligibility a more effective deterrent, he said.
This year’s assets and income requirements for the scheme are based on the criteria last year, said Mr Suwit, but may be changed for next year.
According to this year’s qualifications, the scheme’s recipients are required to be unemployed or have an annual income of 100,000 baht or less in 2016. Their savings, savings certificates and bond holdings must be worth less than 100,000 baht combined.
If they own property, the area must not exceed 35 square metres for a condominium unit, 25 square wah for a townhouse, or 10 rai of land for agricultural purposes. Welfare recipients must be Thai nationals aged 18 and over.
To prevent those who understate their income and assets from gaining access to welfare benefits, the Finance Ministry has directed 70,000 students across the country to conduct a survey of registered welfare recipients’ living conditions and plans to use information from banks and the Land Department to double-check the financial status declared by registrants.
There are 11.7 million applicants who are qualified as recipients of the scheme.
Mr Suwit said recipients’ primary request is subsidisation of utility bills and it is likely the government will meet their demand.
Another request is allowing the transfer of unused subsidies for one item to another, which is possible, he said.
Chatchai Payuhanaveechai, Government Savings Bank (GSB) president and chief executive, said some people may take advantage of the state welfare scheme, but the number is relatively small.
“The qualifications declared by some enrollees, particularly freelancers whose income cannot be clearly stated, may contain invalid information, but I believe the government’s screening process is efficient enough to sort out those who really earn a low income. The chance of an error being made is a mere 0.01%,” he said.
GSB is one of three state-owned banks used for the scheme’s registration centres. The other two are Krungthai Bank and the Bank for Agriculture and Agricultural Cooperatives.
Call for more screening
Somchai Jitsuchon, research director for inclusive development at the Thailand Development Research Institute, suggested the government use spending behaviour information to filter out unqualified persons.
Welfare cards are ready for distribution. There are about 11.7 million of welfare smart card holders. CHUDET SIHAWONG
If any recipients of the government’s welfare scheme usually spend 300 baht per meal or dine out at luxury restaurants, they are not living on the poverty line, said Mr Somchai.
The government should rely on village health volunteers to pinpoint needy targets as they access almost every village, even in remote areas, he said.
“Don’t stop improving and don’t think the current screening process is sufficient. It’s not. I want to see a collaboration between the Social Development and Human Security and Public Health ministries to use village health volunteers to help with updating the welfare scheme database. A few people taking advantage of the system isn’t as serious as inaccessibility for the poor,” said Mr Somchai.
Chairat Seethon, a welfare smart card holder, said he uses money pre-loaded on the card to buy staple goods worth 170 baht at a Thong Fah Pracha Rat shop after receiving the card last month.
Mr Chairat said he would not benefit from the transport subsidy as his workplace is within walking distance.
“Government assistance helps but it is quite difficult for me to access Thong Fah Pracha Rat shops because there are few of them,” he said.
“I support being able to transfer unused money to other categories. I need money that can be used to pay for anything.”
Mr Chairat, who earns around 7,000-8,000 baht a month on average, also received welfare assistance last year.
Second Phase in Planning
Although there are technical errors and some dishonesty in the welfare scheme, the Commerce Ministry, which oversees its operation, has vowed the project will continue as its objective is to directly help the poor.
Deputy Commerce Minister Sontirat Sontijirawong said the ministry will develop a second phase, under which more goods are available in the Thong Fah Pracha Rat shops, particularly products made by local businesses and small and medium-sized enterprises (SMEs).
“We want to make it clear the project does not aim to benefit major consumer product companies but rather all Thais, particularly the poor and SMEs,” said Mr Sontirat.
He played down the issue of freeloaders, who have raised concerns about corruption and the transparency of the project.
The Finance Ministry will play a major role in creating a measure to filter fraudsters, said Mr Sontirat.
“We are trying our best to increase the number of shops to cover as many areas as we can, making the project more efficient,” he said.
Since the project began on Oct 1, the Commerce Ministry has installed electronic data capture (EDC) machines, which are used as welfare card readers, at 9,500 shops nationwide.
The ministry set a target of 20,000 shops with EDC machines earlier.
Mr Sontirat said the ministry aims to install 18,000 EDC machines nationwide by the end of November.
He said this is the first phase of the welfare project.
“If only 3-5% of the 11.7 million low-income earners are helped, or if we can prevent the number of poor people from rising, this means the project has succeeded,” said Mr Sontirat.
He said the second phase will see more products at cut-rate shops from the One Tambon One Product scheme as well as those from SMEs and local enterprises.
The other goal is to build a wider network of Thong Fah Pracha Rat shops.
Mr Sontirat said the government is evaluating the project’s progress after it has been operating for one month to seek possible improvements and prevent fraudulent claims.
If dishonest claims are discovered, the government will revoke the rights of those low-income card holders and shops or other guilty parties will be removed from the project immediately, he said.
No one has been punished thus far despite several accusations reported by the media.
