The central government has clarified that it is not in favor of increasing the income limit for the creamy layer for Other Backward Classes (OBC) reservations. Currently, the limit is ₹8 lakh per annum, and was last raised in 2017. The government believes that raising the limit will harm the poorer OBCs.

New Delhi: For a long time, there has been a debate whether the central government is considering increasing the income limit of the 'creamy layer'. Now, in this matter, the Modi government has made it clear that it is not in favor of increasing the income limit of the creamy layer for OBC reservation. This decision of the central government has come at a time when the income limit was last updated eight years ago, whereas till now it should have been changed twice.

Currently, the annual income limit for the 'creamy layer' is Rs 8 lakh. OBC families whose income exceeds this fixed limit do not get the benefit of reservation in government educational institutions and jobs.

Why is the government not in favor of increasing the income limit?

The central government believes that raising the income limit will only benefit a small minority of OBCs, while making it more difficult for poorer OBCs to advance. Lowering the income limit excludes wealthy OBCs and makes it easier for poorer OBCs to access reservation benefits.

Last updated in 2017

According to the rules, the income limit must be revised every three years to account for inflation. This is to ensure that the economic criteria for the "creamy layer" do not become detrimental to the backward classes. The income limit was last raised from ₹6 lakh to ₹8 lakh in September 2017. It was scheduled to be revised again in October 2020 and again in 2023, but the government has not taken any action on this matter.

The OBC Welfare Committee, chaired by BJP MP Kalyan Singh, in its seventh report urged the Department of Personnel and Training and the Ministry of Social Justice to revise the income limit. Following this, in February 2020, the central government submitted a proposal to the Cabinet to increase the income limit from ₹8 lakh to ₹12 lakh.

There was uproar over the Centre's proposal

This proposal, sent by the central government to the Cabinet, sparked controversy as the Ministry of Social Justice demanded that salaries be included in the income calculation. However, according to a 1993 government order that governs the 'creamy layer' and defines 'income,' salaries and agricultural income are not included in the calculation. Only 'income from other sources' is considered 'total income.'

Due to this controversy, the government shelved the proposal in 2020. Since then, there have been demands that the government separate the two proposals to change the definition of 'income' and increase the income limit to ₹12 lakh, and pursue only the proposal to increase the income limit. However, the Ministry of Social Justice refused to do so, calling it a 'reform package.'

 PC:NBT