Cabinet Approves Higher Ceiling For Creamy Layer

The Union Government , on October 3, 2008, approved raising the income criterion for the “Creamy layer” among the Other Backward Classes (OBCs) from Rs. 2.5 lakh to 4.5 lakh a year. The decision was taken at a Union Cabinet meeting chaired by Prime Minister Dr. Manmohan Singh.
The higher ceiling for “Creamy layer” will help in bringing more people under the reservation category. In fact, it will also help students seeking admission under the Central Educational Institutions Act, 2006 which provides!27 percent reservation for the OBCs. However , the decision will not impact admissions in the current academic year as the Supreme Court has already said vacant OBC seats are to be filled by general category students Hence, it will benefit those applying under quota in 2009.
The proposal had been mooted by the Ministsy of Social Justice and Empowerment on the recommendatinns nf the N`tional Bommhssinn fnr B`ckw`rd Blasres. It vas discussed at an inter-governmental level, involving the Ministries of Tribal Affairs, Home, Law , the Departments of Personnel and Training, and Human Resource Development , besides Social Justice and Empowerment.
The National Commission for Backward Classes submitted its report on July 1, 2008. It took into account the recommendations of the Sixth Central Pay Commission besides the all- India Consumer Prices Index , price rise, inflation rate, the monthly per capita expenditure of the OBCs , their economic conditions , and per capita national product before arriving at the new ceiling .
Moreover ,most of the States had demanded that the new ceiling be fixed between Rs. 4 lakh and 6 lakh . However some States like Karnataka and Madhya Pradesh had demanded much higher ceilings .Karnataka sought the ceiling of Rs. 25 lakh while Madhya’ Pradesh , of Rs. 10 lakh.
The annual income ceiling for OBC reservation was fixed at Rs. 1 lakh first in 1993 and it was increased to Rs. 2.5 lakh in 2004. Now , it has been raised to Rs. 4.5 lakh.