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Centre Opposes Income-Based Creamy Layer for SC/ST Reservations

Published 07 Aug 2026. Access the PDF directly or read the stored explanation below.

UPSC Daily Current Affairs Indian Polity English 07 Aug 2026

Centre Opposes Income-Based Creamy Layer for SC/ST Reservations

Prelims:

Indian Polity

Mains:

GS Paper II- Polity and governance

Current affairs:

The Union Government, in an affidavit before the Supreme Court, opposed the introduction of an income-based creamy layer within Scheduled Castes (SCs) and Scheduled Tribes (STs) reservations, stating that judicial precedents have held that the concept is not applicable to these categories.


Highlights:

Historical Background:

1.        The creamy layer principle originated from the Supreme Court’s Indra Sawhney v. Union of India (1992) judgment, which provided for excluding socially advanced sections among OBCs from reservation benefits.

2.      Following the judgment, the Department of Personnel and Training (DoPT) issued an Office Memorandum on 8 September 1993 laying down criteria for identifying the creamy layer among OBCs.

3.      The Government of India has maintained that the creamy layer principle and the criteria prescribed by DoPT apply specifically to OBC reservations.

Government’s Response:

1.        According to the Union Government's affidavit before the Supreme Court (2026), judicial precedents have clarified that the principles of the creamy layer are not applicable to Scheduled Castes (SCs) and Scheduled Tribes (STs).

2.      It opposed petitions seeking the introduction of an income-based creamy layer for SC/ST reservations on the lines of the existing system for Other Backward Classes (OBCs).

Means Test in Welfare Schemes:

1.        The Government stated that most welfare and development schemes for SCs, STs, and OBCs already use a means test to ensure that benefits reach eligible and deserving beneficiaries.

2.      However, this means test does not apply to reservations in educational institutions and public employment.

Need for Empirical Assessment:

1.        The Government argued that any proposal to introduce income-based preferences within reserved categories should be preceded by a holistic review, a comprehensive empirical study, collection and analysis of socio-economic data relating to beneficiaries.

Objective of Reservation Policy:

1.        According to the Government, the reservation policy for SCs, STs, and OBCs aims to:

                     i.            Achieve social equality and justice.

                   ii.            Address historical discrimination and disadvantages.

                 iii.            Promote economic empowerment of marginalised communities.

                iv.            Ensure inclusive participation in education, public services, and decision-making processes.

        Reservation Policy Debate:

2.      The issue gained prominence following the 2024 Supreme Court judgment in State of Punjab vs Davinder Singh.

3.      While the judgment allowed States to sub-categorise SC/ST reservations, one of the opinions suggested identifying a creamy layer within SCs and STs based on criteria distinct from those applied to OBCs.

 

Source: THE HINDU - https://www.pressreader.com/india/the-hindu-international-9bn2/20260807/281870125251079?srsltid=AfmBOook4bPL9cmCX_IGwT2MCz6mSysUCKEYOA2jyaFkaA_loZ4vkAJW

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