New Delhi, October 3
The Union cabinet today approved 80 per cent raise in the income ceiling for creamy layer among Other Backward Classes (OBCs). Directed at expanding the voter base ahead of general and assembly elections, the decision means that the creamy layer ceiling among OBCs will now be Rs 4.5 lakh a year and not Rs 2.5 lakh a year, fixed earlier in 2004. With this enhancement, a large number of OBCs, earlier excluded from reservation benefits, will now be covered.
The present hike, however, is less than what some over-ambitious states like Karnataka and Madhya Pradesh were demanding. They wanted the social justice and empowerment ministry to bring the ceiling up to Rs 22 lakh and Rs 10 lakh a year. The demand was scuttled within the National Backward
Classes Commission which was assigned the task of revising the creamy layer criteria.
The Commission, in its report to the government on July 1, argued for 80 per cent raise, worked out after considering the Sixth Pay Commission recommendations, per capita income, GDP, wholesale price index and rupee devaluation.
Today’s hike is expected to pacify Congress allies ahead of next year’s general elections. Most of them, including the LJP, RJD, DMK and PMK, were averse to the concept of excluding the creamy layer from the benefits of reservation in educational institutions and government departments.
The Supreme Court in its April order had allowed 27 OBC per cent reservation in higher educational institutes, with a rider that creamy layer should be excluded. Following the decision, the Congress allies lobbied hard to ensure a way around the verdict or an alternative to cover as many OBCs in reservation bracket as possible.
Communicating the government decision in this regard today, information and broadcasting minister Priyaranjan Dasmunshi said the Cabinet today gave its approval for revising the income criteria for creamy layer from the present Rs 2.5 lakh per annum to Rs 4.5 lakh per annum.
The decision would now be communicated to the ministry of human resource development and department for personnel for appropriate action and notification. Earlier, the matter was discussed between ministries of HRD, social justice, tribal affairs, law and DoPT, with every ministry taking positively to the recommendations made by NCBC.
This is the third time the government has revised income ceiling for OBC creamy layer. It was fixed at Rs one lakh per annum in 1993 and revised to Rs 2.5 lakh per year in 2004. The present raise means close to one lakh additional OBCs will be able to take the benefit of 27 per cent reservation in higher educational institutions, consequent upon the Supreme Court’s order allowing the implementation of Central Educational Institutions Act, 2006. The Act provides for 27 per cent reservation to OBCs, minus the creamy layer.
