Introduction
In a diverse and developing country like India, economic growth alone cannot ensure inclusive development unless it addresses existing inequalities, particularly those based on gender. One of the most effective tools for integrating gender perspectives into economic policymaking is Gender Budgeting. Introduced in India in the early 2000s, gender budgeting has gradually evolved from a policy commitment to a governance tool intended to mainstream gender equity in all aspects of fiscal planning.
This article explains the concept of gender budgeting, its historical evolution in India, evaluates its role in promoting inclusive economic development, and highlights the challenges and way forward for making it more effective.
Understanding the Concept of Gender Budgeting
What is Gender Budgeting?
Gender Budgeting is the application of gender mainstreaming in the budgetary process. It means analyzing government budgets to assess how they respond to the needs of both women and men and reallocating resources to promote gender equity. It does not mean creating a separate budget for women but rather integrating a gender perspective at all levels of the budgeting process.
Key Features:
- Recognizes that fiscal policies have differential impacts on men and women.
- Aims to promote gender equality by prioritizing spending on sectors that benefit women and girls.
- Ensures that public expenditure contributes to reducing gender gaps in education, health, employment, and social welfare.
Historical Context and Evolution in India
Initial Steps (2000–2005)
- The concept of gender budgeting was first mooted by the Ministry of Women and Child Development (MWCD) in India.
- In 2004–05, the Government of India formally adopted Gender Budgeting as a fiscal innovation to advance gender equity.
Institutional Framework
- A Gender Budgeting Cell (GBC) was established in the Ministry of Finance in 2005.
- MWCD issued guidelines to ministries and state governments for setting up GBCs.
- The Union Budget began including a Gender Budget Statement (Statement 13) from 2005–06 onwards, highlighting gender-specific allocations.
Structure of the Gender Budget Statement
The Gender Budget Statement is classified into two parts:
- Part A: Schemes in which 100% of the budget is allocated for women (e.g., maternity benefits, women’s hostels).
- Part B: Schemes in which at least 30% of funds are allocated for women (e.g., rural employment, health, sanitation).
Role of Gender Budgeting in Promoting Inclusive Development
1. Enhancing Women’s Access to Resources
Gender budgeting ensures that women, who often face barriers to accessing public goods and services, are directly considered in planning and implementation. For instance:
- Beti Bachao, Beti Padhao initiative aims at improving child sex ratio and girls’ education.
- Ujjwala Yojana, which provides free LPG connections to women, improves both health and time use efficiency.
- Mahila E-Haat supports female entrepreneurs through digital platforms.
2. Bridging Gender Gaps in Human Development
India ranks poorly on global gender indices due to unequal access to health and education. Gender budgeting supports schemes like:
- Sukanya Samriddhi Yojana to promote savings for girl children.
- Kasturba Gandhi Balika Vidyalayas to increase female literacy and school attendance.
These programs enhance women’s human capital and, in turn, improve the country’s development indicators.
3. Economic Empowerment and Employment
Gender-focused budgets allocate resources to schemes aimed at increasing female labor force participation:
- Skill India, STEP (Support to Training and Employment Programme), and MUDRA Yojana have dedicated components for women entrepreneurs.
- These programs foster financial inclusion and self-reliance among women.
4. Reducing Gender-Based Violence and Discrimination
Funds allocated to women’s helplines, legal aid, and shelters under gender budgeting help address safety and legal concerns that hinder women’s participation in society and the economy.
- One Stop Centres and Nirbhaya Fund are key initiatives supported through gender-responsive budgeting.
5. Encouraging Gender-Responsive Governance
Gender budgeting has made various departments and states more accountable. States like Kerala, Karnataka, and Odisha have adopted their own gender budgeting practices. This promotes decentralized planning with local relevance.
Case Studies and Best Practices
1. Kerala
Kerala was one of the earliest states to institutionalize gender budgeting. The State Planning Board has a dedicated gender budgeting team, and several local self-governments have adopted gender-sensitive project evaluation.
2. Odisha
Odisha has introduced gender-sensitive performance budgeting, evaluating outcomes from a gender perspective. Its women-led SHG movement (Mission Shakti) has been strongly supported by state budgets.
3. Union Government Initiatives
Over time, ministries such as Rural Development, Human Resource Development, and Health have increased allocations under Part B schemes with measurable gender outcomes.
Achievements of Gender Budgeting in India
- Increased Allocation: The Gender Budget grew from ₹24,230 crore in 2005–06 to over ₹2 lakh crore in 2022–23.
- Cross-sectoral Impact: It now spans over 30 ministries and departments.
- Visibility of Women’s Issues: Budget discussions now routinely include gender equity considerations.
Challenges in Implementation
Despite two decades of progress, gender budgeting in India faces several limitations:
1. Lack of Gender-Disaggregated Data
Many schemes and departments fail to provide gender-specific beneficiary data, making it difficult to assess outcomes or reallocate resources efficiently.
2. Tokenism and Poor Targeting
Some allocations under gender budgeting are symbolic or poorly linked to actual outcomes. Many departments report expenditure under Part B without rigorous impact assessment.
3. Limited Institutional Capacity
Gender Budgeting Cells are often under-resourced and lack trained personnel. There is minimal gender analysis in the planning and evaluation stages.
4. Weak Monitoring and Evaluation
There is no centralized framework for tracking gender outcomes. Gender audits and social accountability mechanisms remain weak or absent.
5. Urban-Rural and Caste Biases
Gender budgeting often fails to address intersectionality. Marginalized groups like Dalit and Adivasi women or those with disabilities may not benefit equitably.
Way Forward: Strengthening Gender Budgeting in India
1. Build Capacity and Awareness
- Train government officials and financial planners in gender analysis and budgeting.
- Increase collaboration between ministries and women’s organizations for grassroots inputs.
2. Improve Data Collection and Transparency
- Mandate gender-disaggregated data in all government programs.
- Develop dashboards for real-time monitoring of gender-specific outcomes.
3. Mainstream Gender in All Ministries
- Every ministry should integrate gender considerations in all stages: planning, execution, and evaluation.
- Incentivize ministries that show measurable improvements in gender indicators.
4. Link Gender Budgeting with SDGs
- Align gender budgeting goals with the Sustainable Development Goals (SDGs), especially SDG 5 (Gender Equality).
- Use indicators like Female Labor Force Participation Rate (FLFPR) and Gender Parity Index (GPI) to measure success.
5. Expand Role of Local Bodies
- Encourage Panchayats and Urban Local Bodies to prepare gender budgets for local development schemes.
- Provide guidelines and funds to promote decentralized gender-responsive budgeting.
Conclusion
Gender Budgeting is not just a technical exercise; it is a powerful political and economic tool for social justice and inclusive growth. In a country like India, where gender disparities continue to hinder equitable development, integrating gender perspectives in budgeting can correct historical imbalances and accelerate progress toward economic and social equity.
While India has made significant strides in adopting gender budgeting at the national and state levels, challenges persist in terms of institutional capacity, accountability, and real-world impact. With sustained commitment, transparent mechanisms, and grassroots participation, gender budgeting can be a game changer in building a truly inclusive and equitable economy.
