House Panel Suggests Raising Creamy Layer Limit From ₹8 lakh

Syllabus: GS2/Polity

Context

• A parliamentary committee on the welfare of Other Backward Classes recommended raising the ₹8 lakh income limit for “creamy layer” within OBCs.

Key Recommendations

• Income Limit for Creamy Layer: Raising the income limit for determining the creamy layer among OBCs after consulting stakeholders.
  • This is to ensure more backward class people benefit from reservation policies and welfare schemes.
  • The income limit for creamy layer was introduced in 1993 at ₹1 lakh and has been raised several times, last in 2017 to ₹8 lakh. 
• Data Transparency in Job Quotas: Recommended the government to make data on Central job quota implementation publicly available, ensuring transparency.
  • The DoPT has created a portal (RRCPS) for monitoring this data, but currently, it is accessible only to concerned ministries.
• Uniform Formula for Income Calculation: The committee highlighted that different states calculate the creamy layer income limit differently and recommended the Centre establish a uniform formula.
• Equivalence of Posts in Autonomous Bodies: The committee called for the quick establishment of equivalence of posts in autonomous bodies with those in Central and State governments.
  • This delay has caused OBC candidates who cleared UPSC exams to miss service allocations.
• Scholarship Income Limit: The committee recommended raising the current ₹2.5 lakh income limit for OBC scholarships. 
  • It suggested doubling the income limit for pre- and post-matric scholarships and raising limits for top-class scholarships for school and college education.
• Expansion of Scholarship Coverage: The committee suggested extending the pre-matric scholarship for OBCs to include students from Class V onwards (currently available for Class IX and X).
• Increase in Top-Class Scholarships: The committee proposed increasing the number of slots (currently 15,000) for top-class school education scholarships for OBCs, EBCs, and DNTs, based on demand.

Creamy Layer Principle

• It is a concept used to ensure that reservations in educational institutions and government jobs are extended to those who are economically and socially disadvantaged within a certain group. 
  • It aims to prevent the more affluent or advantaged members of a reserved category from availing themselves of these benefits.
• Origin: The concept was first articulated by the Supreme Court of India in the Indra Sawhney case (1992), also known as the Mandal Commission case. 
  • The Court’s ruling emphasized that within the OBC (Other Backward Classes) category, those who are relatively more privileged should not benefit from reservations.
• Impact: By applying the creamy layer principle, the government aims to make its affirmative action policies more effective and equitable, ensuring that those who are most in need receive the support intended for them.

Need for the Creamy Layer Concept

• Prevents Misuse: Ensures economically well-off or socially advanced OBCs don’t exploit the reservation system.
• Adds Transparency: Clear income thresholds for determining the creamy layer increase fairness and transparency in the reservation process.
• Promotes Social Mobility: Helps disadvantaged OBCs access education and jobs, fostering upward social mobility.
• Fosters Social Justice: Ensures that reservation benefits serve those who are most in need, maintaining fairness and inclusion.

Constitutional Provisions

• Article 16: It provides for equality of opportunity for all citizens but as an exception the State can provide for reservation of appointments or posts in favour of any backward class that is not adequately represented in the state services.
• Article 16 (4A): Provides that the State can make any provision for reservation in matters of promotion in favour of the Scheduled Castes and the Scheduled Tribes if they are not adequately represented in the services under the State.
• Article 335: It recognises that special measures need to be adopted for considering the claims of SCs and STs to services and posts, in order to bring them at par.
• 103 Amendment of the Constitution of India: Introduced 10% reservation for Economically Weaker Sections (EWS) of society. 

Source: TH