Wednesday, January 9, 2019

Haath ko Aaya, Muh Na Laga: The Story of 10% Quota for General Category "Poor"

BREAKING: The 124th Constitution Amendment Bill to provide 10% quota in jobs and education to general category candidates who belong to economically weaker sections has just been passed by the Parliament. It's rare that our parliament displays such unanimity and speed.

One thing that stands out in this reservation policy is ... the way "economically weaker section" has been defined. Anyone earning less than 8 Lakhs/annum is in it! Wow!

Where did this figure arrive?
It seems that the govt has imported this figure from OBC reservation. In OBC (or Other Backward Classes), anyone who earns more than 8 Lakhs/annum is considered to be part of "Creamy Layer" and hence not eligible for the benefits of reservation.

The remaining people of that particular caste, earning less than the cut-off income are considered to be representing a "backward class" in the true sense, as per the Supreme Court.

But why 8 lakhs? Ain't that a lot of money?
Well, the reason is simple. If the govt. has to deny somebody reservation - a benefit given to him by the Constitution - the reason for this denial has to be so strong that the ass of the govt. is covered. But the biggest reason is ... reservation can't be given (and hence can't be denied) solely based on financial standing of a person.

Once the presumption has been made by the President of India that a particular caste is "backward" because of its low status in the social hierarchy for various reasons and the injustice it has suffered over centuries, it's not easy to simply throw some members of that caste out just because they are not as poor as other members of that caste, unless they are earning so high that that income alone is sufficient to pull them out of their social, educational and economic backwardness.

That's why 8 lakhs/annum (earlier 6 Lakhs/annum) has been chosen because even a dead body lying in a grave can tell that someone earning 8 lakhs in a year is definitely NOT backward and no injustice would be caused to him/her if the benefit of reservation is denied.

Now to say, "someone earning 8 lakhs in a year is definitely NOT backward" is one thing, to say, "someone earning 8 lakhs in a year is definitely NOT poor" is quite the other. And this is precisely what Modi govt has said while promising 10% reservation to General category people who happen to be economically weak/backward.

Since these people can't claim any historic injustice or low social status, the Sole criteria on which they are promised reservation is their weak economic condition.

Now, in India, who can be called "economically weak' or 'economically backward' or in simple words 'poor'? Mind you, so poor that its justified to provide him the benefit of reservation which so far is only provide to SCs, STs and OBCs.

The World Bank suggests a poverty line of 3.2 PPP$ which translates into roughly a consumption level of Rs 75 per person per day. (Via Indian Express, June 2018). So anyone whose annual income/consumption is less than Rs. 27,375 can be considered 'poor'.in India.

If that's too fuckin low, let's take some help from the Finance Ministry. It says that anyone with an annual Income less than Rs 2.5 Lakhs need not bother pay Income tax based on the maxim "nanga nahayega kya aur nichodega kya."

From 2.5 - 5 Lakhs, s/he pays Income tax at the rate of 5%. And after 5 Lakhs, the rate is a whopping 20%. I guess it's fair to assume that if you are paying Income Tax, you are not economically weak. The govt doesn't have to wait for the income to rise up to as high as 8 lakhs to realize that the person isn't economically weak, while taxing him all this while.

Clearly, what could be safely said, in the case of OBC, at 8 Lakh rupees, can be fairly said, in the case of a general category person, at Rs 2.5 Lakhs.

In this time and age, where money in your bank decides your exposure and access to opportunities, it's fair and justified to provide a window of opportunity to people who do not have a sound bank balance, but a decision - good, in principle - has been reduced to a farce (and almost a 'fraud' committed on the citizens in an election year) by setting a ridiculously high income cut-off which has an effect of making more than 90% people eligible for the 10% posts.

It might turn out to be wiser to rather stay in the core-general category and compete with lesser number of people for the remaining 41% seats.