Syllabus
GS Paper 3 – Government Budgeting
Context
The gender budget reached 1% of GDP estimates in 2024-25 for the first time
Source
The Hindu | Editorial dated 30th August 2024
Analysing the Gender Budget of 2024-25
Gender Budgeting is a strategic tool utilized by the Ministry of Women and Child Development (MoWCD) to ensure that women benefit equally from development initiatives as men. The Gender Budget Statement (GBS), published annually alongside the Union Budget, serves as a mechanism for ministries and departments to evaluate their programmes from a gender perspective and report allocations for women.
The goal is to mainstream gender considerations in policy formulation, implementation, and review, ensuring that gender commitments are reflected in budgetary allocations.
Timeline of Gender Budgeting in India
- 2001: The concept of gender budgeting was first mentioned in the Budget speech by the then Finance Minister. The National Institute of Public Finance and Policy (NIPFP) analyzed the Union Budget 2001-02 from a gender perspective for the first time.
- 2005-06: The Gender Budget was formally introduced as part of the Budget Circular, issued by the Expenditure Division of the Ministry of Finance. It included:
- Part A: Dedicated to Women Specific Schemes with 100% allocation for women.
- Part B: Focused on Pro-Women Schemes with at least 30% of the allocation for women.
- 2007: The Department of Expenditure issued a charter detailing the composition and functions of Gender Budgeting Cells (GBCs) in various ministries.
- 2010: The Planning Commission recommended replacing the Women Component Plan with Gender Responsive Budgeting, or simply Gender Budgeting, which was to be jointly adopted by the Ministry of Finance and MoWCD.
- 2021: The MoWCD reported that 27 states and Union Territories had adopted Gender Budgeting, showing an increased commitment at the sub-national level.
- 2024: Introduction of part C, reports schemes with less than 30% provisioning for women
Historic Increase in Gender Budget (GB)
For the first time, the Gender Budget reached 1% of GDP in 2024-25, with overall allocations surpassing ₹3 lakh crore.
This represents a significant rise, marking a shift towards prioritizing women’s issues in financial planning.
Reasons for Increased Allocations
- Introduction of Part C in the Gender Budget Statement (GBS): A new addition, Part C, reports schemes with less than 30% provisioning for women.
- This inclusion, such as the PM Kisan scheme with an outlay of ₹15,000 crore, contributes to the increased budgetary allocations for women-centric programmes.
- Increase in Part A Allocations: Part A of the GBS, which lists schemes with 100% allocation for women, saw a substantial rise from 15-17% to almost 40%.
- This increase is largely due to the Pradhan Mantri Awas Yojana (PMAY) now being fully reported under Part A, enhancing the visibility of pro-women funding.
Issues with Gender Budgeting in India
- Lack of Scientific and Systematic Approach:
- The Gender Budget Statement still lacks a methodical approach, leading to discrepancies in reporting.
- There is a need for a clearer methodology to ensure accurate and meaningful gender-focused budgeting.
- Instances of Over-Reporting:
- Some schemes, like the PM Employment Generation Programme (PMEGP), are reported with high allocations for women without clear justifications.
- The GBS shows ₹920 crore or 40% of the PMEGP’s budget allocated for women, despite a lack of detailed explanation.
- Cases of Under-Reporting:
- Conversely, several programmes have historically under-reported allocations for women.
- For example, the National Rural Livelihoods Mission (NRLM) only recently reflected 100% of its outlay as dedicated to women.
- MGNREGS , despite women constituting 59.3% of workdays, is reported with only 33.6% of its budget under Part B.
- Concentration in Few Ministries:
- Nearly 90% of the Gender Budget is concentrated in five key ministries, limiting the impact across other sectors.
- For example, MGNREGA is the most significant scheme under gender budgeting in terms of livelihood support, while areas like transportation, water collection, and water security are often overlooked.
Steps Needed to Promote Gender Budgeting
- Applying a Gender Lens to Budgets:
- Rather than creating exclusive schemes for women, there should be a uniform application of a gender perspective to all government schemes.
- This would help ensure that the needs of women are considered in the planning and execution of all public policies and programmes.
- Tracking Gender Disaggregated Data:
- It is crucial to gather and analyze gender-disaggregated data to understand who is benefiting from government schemes.
- This data can help to identify gaps and improve the design and implementation of future programmes.
- Decentralization of Gender Budgeting:
- Empowering officials at the district and panchayat levels can enhance the effectiveness of gender budgeting.
- These officials are better positioned to address local gender-specific needs and can ensure that resources are allocated in a way that reflects the realities on the ground.
- Improving Reporting Accuracy:
- To minimize anomalies in the GBS, there should be consistent efforts to justify allocations and improve the quality of reporting.
- This will ensure that funds genuinely reach women and address their needs effectively.
- Need for Explanations:
- Including explanations for allocations in the GBS would improve transparency and accountability.
- Detailed reporting should reflect actual spending on women’s needs, rather than just increasing reported allocations.
Conclusion
To achieve true gender equality in development, India’s Gender Budgeting framework needs to be broadened and strengthened. By applying a gender lens across all sectors, improving data tracking, and empowering local officials, the government can ensure that women’s needs are adequately addressed and that budgetary commitments translate into meaningful outcomes.
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Related PYQ
Women empowerment in India needs gender budgeting. What are the requirements and status of gender budgeting in the Indian context? [ UPSC Civil Services Exam – Mains 2016]
Practice Question
Discuss the evolution and current status of Gender Budgeting in India. Highlight the challenges associated with its implementation and suggest measures to enhance its effectiveness? [250 words]
Guidelines to Answer
- Introduction
- Briefly define Gender Budgeting and its significance in promoting gender equality in India.
- Evolution of Gender Budgeting in India
- Mention key milestones in the evolution of Gender Budgeting, such as its introduction in 2005-06, and important developments in subsequent years (e.g., formation of Gender Budgeting Cells in 2007, shift from Women Component Plan to Gender Responsive Budgeting in 2010, and adoption by states by 2021).
- Current Status
- Describe the present status of Gender Budgeting in India, including its share in total expenditure and GDP, and the concentration of funds in specific ministries.
- Challenges in Implementation
- Highlight challenges like limited allocation and coverage, concentration in a few ministries, lack of gender-disaggregated data, and inefficiencies in post-Covid response.
- Measures to Enhance Effectiveness
- Suggest measures to improve Gender Budgeting, such as:
- Applying a gender lens across all sectors.
- Improving data collection and analysis.
- Decentralizing implementation to local levels.
- Ensuring better fiscal marksmanship.
- Suggest measures to improve Gender Budgeting, such as:
- Conclusion
- Summarize the importance of Gender Budgeting as a tool for achieving gender equality and the need for a more comprehensive and inclusive approach.