The union government has raised the income ceiling for the Other Backward Classes (OBC) from Rs. 2.5 lakh to 4.5 lakh a year. The decision is aimed to get support from this category in the forthcoming elections. The move would bring more number of people under the reservation category.

The union ministry for the Social Justice and Empowerment has recommended increasing the income ceiling limit for OBC’s. It would be beneficial for students who want to take admission in central institutions under 27 per cent reservation for backward classes. 

The final decision on income ceiling limit is taken after consulting with ministries of Tribal Affairs and Home, and the Departments of Personnel and Training, Law and Human Resource Development, besides Social Justice and Empowerment. Some states had also demanded income ceiling between Rs. 4 lakh and 6 lakh.

The government has considered many aspects such as all-India consumer price index, inflation rate, the monthly per capita expenditure of the OBCs, their economic conditions, and per capita national product to arrive at the decision. The cabinet has also directed the Human Resource Development Ministry and the Department of Personnel and Training to issue appropriate orders to government departments and educational institutions.