Government Budget - Reduction in inequalities of income through quota system

Class 12 Macro EconomicsChapter Government BudgetTopic Objectives of BudgetSub topic -How to reduce inequalities of income

It is the most important question in the exam moving beyond the book I feel that we can emphasize  on the recent quota system which has been fixed by the government for socially backward category

Method to reduce inequality of income

The union cabinet decision to push for 10 percent reservation and educational institutions for the economically backward section in the general category is a significant move

The move is welcome as the new category of reservation will be targeted at the economically deprived in the general category, which does not benefit from any form of job quotas at present

It also does not differentiate on the basis of caste and religion

The reservation is not just for the hindus but also for the non - hindus such as muslims and Christians

The eligibility criteria for ‘economic weakness’ has been drawn up in such a way that it appears to cover almost all Indians.

The annual family income should not exceed Rs8 lakh.

 The maximum area of agricultural landownership is not to be above 5 acres. The area of house should not be larger than 1,000 sq ft.

 Some of these criteria are sufficiently liberal to accommodate almost 95% of Indian households.

 The country as a whole is still poor, with economic strength concentrated in the hands of a few. Also, criteria that apply to about 90% of the population being the basis for reservation for 10% is patently absurd.

Besides, the public sector has long vacated the commanding heights of the Indian economy and generated fewer and fewer employment over the recent past.

 In concrete terms, it means the number of jobs on offer will be pitifully small, and competition for them even more incredibly fierce than it already is.

The government jobs sector is simply not big enough to pick up the slack

While promoting reservations in private colleges, an extension of the Right to Education, is indeed a positive move, the key issue here is the quality of instruction imparted and the price charged for it.

Despite the challenge of creating a skilled and intelligent population, education spend (Centre and States) as a share of the GDP has actually fallen from 3.1 per cent of the GDP in 2012-13 to 2.7 per cent in 2017-18.

Pankaj Bhanwani

9899971997

pankajbhanwani@gmail.com