Gender Budget Statement 2024-2025

Policy Update
Lakshita Singh

Context

In India, gender-responsive budgeting was first introduced in the 2005-06 budget process, and since then, the government has published annual Gender Budget Statements (GBSs). These are categorized into two sections: Part A, which pertains to programs exclusively for women, and Part B, which allocates at least 30% of resources to women within broader programs. The Ministry of Women and Child Development spearheaded this initiative, which was supported by the Ministry of Finance. This year’s gender budget has reached 1% of the GDP for the year 2024-25 and allocation for over more than 3 lakh crore has been for pro-women programmes emphasizing women led devlopment.

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Key highlights

Increase in Pro-Women Allocations
The allocation towards pro-women schemes has grown to approximately 6.8% of the total budget expenditure for 2024-25, a notable rise from the historical average of around 5%.

Introduction of Part C in Reporting Structure
A new Part C section has been added to the Gender Budget Statement (GBS), covering schemes where up to 30% of funds are allocated to women, such as the PM Kisan scheme.

Previously, the GBS had two sections:
– Part A, which focused on women-specific schemes with 100% of the allocation for women, like SAMARTHYA. (The Samarthya scheme, part of Mission Shakti, focuses on women’s empowerment and safety.It also updates existing schemes like Ujjwala, Swadhar Greh, and Working Women Hostel.) This now accounts for almost 40% of GBS allocations, largely due to the full inclusion of the Pradhan Mantri Awas Yojana (PMAY).
– Part B, which covered schemes with 30% to 99% of the expenditure aimed at benefiting women, such as the PM AJAY – Adarsh Gram Yojana.

What is Gender Budgeting?

Gender budgeting serves as a key mechanism to address gender-specific vulnerabilities by incorporating a gender perspective into government policies. It leverages the budget as a strategic tool to not only reduce inequalities but also transform the socio-economic standing of women and girls. This approach highlights that while gender-sensitive laws, programs, and initiatives are essential, providing sufficient financial resources is equally crucial to achieving the desired outcomes. Often, governments pledge to promote gender equality and mainstreaming, but there is a disconnect between these commitments and how funds are allocated. Gender-responsive budgeting seeks to close this gap by ensuring that public resources are allocated and spent in a way that promotes gender equality.

Need for Gender Budgeting

Despite India’s advancements in various sectors, gender disparities remain pronounced in key areas such as education, health, employment, and political participation. Gender budgeting plays a crucial role in addressing these gaps by ensuring that the unique needs of women are integrated into policy planning and implementation. It fosters accountability in the pursuit of gender equality goals and involves a thorough examination of the Annual Budget to assess its gender-specific outcomes. This process transforms gender commitments into concrete budgetary actions.

Through gender-sensitive schemes in sectors like health, education, social security, labor, and employment, the government aims to cater to the distinct needs of women. The goal of gender-responsive budgeting is not to create a separate budget, but rather to implement initiatives that meet women’s specific needs within the broader budget framework. Additionally, it involves preparing clear documentation that highlights women-centric schemes and aligns budget allocations with tangible results. Ultimately, the objective of gender budgeting is to achieve gender equality across all segments of society which also aligns with achieving sustainable development goals (SDG 5- Gender equality)

Gender budgeting in India has positively impacted women by:

Identifying and addressing their specific needs through targeted spending.
Enhancing legal frameworks, such as the Criminal Law Amendment Act, 2013, and the Sexual Harassment of Women at Workplace Act, 2013.
Reducing economic disparities between genders and income groups.
Supporting the integration of gender perspectives into macroeconomic policies.
Boosting civil society involvement in economic policy development.

Implementation

The implementation of a Gender Budgeting Statement (GBS) involves a systematic approach to ensuring that government resources are allocated in a way that addresses gender disparities and promotes gender equality. The GBS is a key tool used by governments to track and evaluate the gender-specific impact of budgetary allocations.

Policy Formulation and Gender Sensitivity
Identifying Gender Priorities: The first step involves recognizing the gender-related issues that need attention, such as gaps in education, health, labor force participation, and access to social security. Gender priorities are typically aligned with national development goals and international commitments, such as the Sustainable Development Goals (SDGs), which include gender equality as a core component.
Engagement with Stakeholders: Policy formulation should involve consultations with women’s organizations, gender experts, and civil society. This ensures that the specific needs of women and marginalized gender groups are reflected in the budget.
Budget Preparation with a Gender Lens
Gender Budget Cells (GBCs): Many governments, including India, have established Gender Budget Cells within various ministries and departments to ensure that a gender perspective is integrated during budget planning. These cells are responsible for analyzing policies, programs, and schemes through a gender lens.
Categorization of Schemes: The Gender Budgeting Statement is divided into two parts:
Part A: Allocations for schemes that are 100% aimed at women, such as maternal health programs or women’s vocational training.
Part B: Allocations for schemes where at least 30% of the beneficiaries are women, such as poverty alleviation schemes or rural development programs that indirectly benefit women.
Gender Analysis of Programs: Each ministry or department must evaluate how its programs impact women and allocate sufficient funds to address their needs. For instance, in education, this might involve setting aside funds specifically for female students’ scholarships.
Budget Allocation and Implementation
Resource Allocation:, resources are allocated to ensure that these initiatives are adequately funded. The aim is to balance the budget in a way that meets the distinct needs of both men and women.
Capacity Building: Capacity-building workshops and programs are often organized to raise awareness and build expertise on gender budgeting within government bodies.
Monitoring and Evaluation
Tracking Gender Outcomes: Ministries and departments are required to track the outcomes of gender-sensitive initiatives. This includes monitoring the effectiveness of programs in addressing gender inequalities and ensuring that the allocated funds are reaching the intended beneficiaries.
Preparation of Reports: Gender Budget Statements typically include a performance evaluation section, where departments are asked to report how budget allocations have translated into tangible benefits for women and girls.
Outcome-Based Budgeting: This involves linking budgetary outlays with physical achievements. For example, if the budget allocates funds for women’s education, the government should track metrics such as the increase in female literacy rates or enrollment in schools.
Transparency and Accountability
Publication of Gender Budget Statements: To ensure transparency, the Gender Budgeting Statement is published as part of the national budget documents. It outlines the specific allocations made for women and the expected outcomes.
Parliamentary Oversight and Civil Society Involvement: Parliamentarians, especially women’s caucuses, may review the Gender Budget Statements and hold ministries accountable for gender-sensitive spending. Civil society organizations also play a role in monitoring the implementation of gender budgeting and can push for corrective actions if discrepancies are found.

Challenges in Gender Budgeting in India

One major issue with gender budgeting in India is exaggerated reporting, where inflated budget allocations are shown without adequate justification. For instance, the PM Employment Generation Programme (PMEGP) reports ₹920 crore (40% of its total budget) in the Gender Budget Statement (GBS), though this figure lacks proper support. Such overestimations pose a significant challenge to the credibility of gender budgeting.

Under-reporting and omission of critical allocations are also frequent problems. Key initiatives targeting women’s needs are often understated. While the National Rural Livelihoods Mission (NRLM) is now appropriately categorized as benefiting only women and girls, this correction came later than it should have. Similarly, programs like MGNREGA, where women contribute 59.3% of total workdays, report just 33.6% of their budget under Part B of the GBS, indicating that women should receive a larger share. Other initiatives for women entrepreneurs, such as PM Vishwakarma, SVANidhi, and Stand-Up India, also suffer from incomplete reporting.

Overlooking critical sectors, such as transportation, water collection, and water security—areas that disproportionately affect women—remains a persistent issue in gender budgeting.

Comparison of Gender Budgeting Across Countries

India

Introduced Gender Budgeting in 2005-06; annual Gender Budget Statements (GBS) published.
Percentage of Budget Allocated to Gender-Sensitive Programs: 6.8% (2024-25).
Key Features:
– GBS includes Part A (100% women-specific) and Part B (30-99% women-related).
– New Part C includes up to 30% allocation for women

Sweden

Gender budgeting introduced in the 1990s; part of a broader gender equality strategy.
Percentage of Budget Allocated to Gender-Sensitive Programs: 12% (2020).
Key Features:
– Gender equality perspective in all budget proposals
– Emphasis on outcomes for women’s empowerment.

South Africa

Integrated gender budgeting into national budgets since 2000; Gender Responsive Budgeting (GRB) initiatives.
Percentage of Budget Allocated to Gender-Sensitive Programs: 8.6% (2019-20).
Key Features:
– Focus on poverty alleviation and social welfare programs aimed at women.
– Regular audits to track effectiveness.

Canada

Gender-based Analysis Plus (GBA+) introduced in 2015; incorporated into federal budgeting.
Percentage of Budget Allocated to Gender-Sensitive Programs: 5% (2021-22).
Key Features:
– Requires gender analysis for all federal budgets.
– Aims to improve economic outcomes for women and girls.

Rwanda

Gender budgeting implemented as part of the national development strategy since 2005.
Percentage of Budget Allocated to Gender-Sensitive Programs: 30% (2020-21).
Key Features:
– Strong focus on women’s representation in government
– Significant investments in health and education for women.

Iceland

Gender budgeting initiated in 2010; focuses on promoting women’s rights and equality.
Percentage of Budget Allocated to Gender-Sensitive Programs: 10% (2019).
Key Features:
– Comprehensive policies aimed at closing the gender pay gap.
– Emphasis on women’s economic participation.

Observations

Variability in Allocations:
India’s allocation of approximately 6.8% for gender-sensitive programs is lower compared to Rwanda’s 30% and Australia’s 12%.
Comprehensive Frameworks:
Countries like Sweden and Canada have established comprehensive frameworks incorporating gender analysis into all budgetary decisions.
Focus on Outcomes:
Many countries emphasize tracking outcomes related to gender budgeting; South Africa conducts regular audits to assess impact.
Inclusion of New Sections:
India’s introduction of Part C in the GBS allows for a broader range of programs to be included.
Public Awareness and Stakeholder Engagement:
Successful gender budgeting initiatives involve civil society and stakeholders to ensure women’s needs are represented.

Conclusion

India has made strides in gender budgeting, but there are opportunities for further improvement.
Learning from other countries can help increase allocations, enhance transparency, and incorporate gender perspectives more comprehensively into budgetary processes.
This would contribute significantly to achieving gender equality and improving the status of women in India.

Way Forward

To enhance the effectiveness of gender budgeting, it is crucial to increase transparency and accuracy in reporting. The Gender Budget Statement (GBS) should include clear justifications for all allocations to ensure that funds dedicated to women’s needs are accurately reflected. This involves addressing reporting gaps in programs such as MGNREGS and PM Employment generation programme. Additionally, it is important to broaden the scope and coverage of the GBS by including a wider range of programs, especially in neglected areas like transportation and water security, which significantly impact women.

Furthermore, conducting regular reviews and updates of the GBS methodology is essential to incorporate the latest data and insights, ensuring that gender-responsive budgeting remains effective over time. Lastly, it is vital to embed gender sensitivity in program planning by setting clear gender equality goals and allocating resources accordingly. This approach will help ensure that gender considerations are integrated into government programs from the very beginning of the planning stage.