India’s Gender Budgeting Policies – A 20-Year Overview

India has made strides in gender budgeting over the past two decades. By 2024, the gender budget share has risen to 6.8% of total expenditure. This marks a notable increase from 4.5% in 2014. The 2024-25 allocation stands at Rs 3.27 lakh crore, reflecting an 18.9% year-on-year increase from the previous fiscal year.

Background of Gender Budgeting

Gender budgeting in India was introduced in the Union Budget of 2005-06. The aim was to create gender-responsive fiscal policies. The initiative gained traction with the establishment of Gender Budgeting Cells in various ministries starting in 2007. Odisha was the first state to adopt gender budgeting at the state level in 2004-05.

Structure of the Gender Budget

The gender budget is structured into three parts. – Part A includes schemes that exclusively benefit women. – Part B consists of programmes where at least 30% of funds are allocated for women’s welfare. – Part C, introduced in 2024-25, focuses on schemes with less than 30% allocation for women’s welfare. This categorisation enhances transparency and accountability in fund allocation.

Key Areas of Impact

The gender budgeting initiatives have positively influenced several sectors. Education, healthcare, and infrastructure have seen advancements. The rise in allocations for schemes like the Pradhan Mantri Awaas Yojana has particularly benefited women and underprivileged families.

Fiscal Policy Changes

The implementation of gender budgeting has led to substantial changes in India’s fiscal policies. The Reserve Bank of India has noted that these changes promote gender equity across various domains. India is now among 23 countries globally recognised for its efforts in gender budgeting.

Future Directions

To further enhance the effectiveness of gender budgeting, the introduction of a Gender Budgeting Act is proposed. This would establish a legal framework to guide and strengthen gender-oriented policies. Clear mechanisms for classifying expenditures are also suggested for better transparency.

Allocation

For the fiscal year 2024-25, the Ministry of Rural Development accounted for 63.7% of Part A allocations. The Ministry of Housing and Urban Affairs and the Ministry of Petroleum and Natural Gas followed, contributing 23.3% and 8.1% respectively. Together, these ministries represent over 95% of the budgeted expenditure under Part A.

Gender Budget Statements

In the 2024-25 fiscal year, 11 states presented Gender Budget Statements. This reflects a growing recognition of the importance of gender budgeting at the state level, building on the national framework established over the years.

Questions for UPSC:

1. Examine the impact of gender budgeting on fiscal policies in India.
2. Discuss the significance of the Gender Budgeting Act in promoting gender equity.
3. Analyse the role of state governments in implementing gender budgeting initiatives.
4. With suitable examples, discuss the challenges faced in achieving gender equity through budgeting.

Answer Hints:

1. Examine the impact of gender budgeting on fiscal policies in India.

1. Gender budgeting introduced in 2005-06 aimed for gender-responsive fiscal policies.
2. RBI reports changes in allocations towards education, healthcare, and infrastructure.
3. Gender budget share increased from 4.5% in 2014 to 6.8% in 2024, reflecting a policy shift.
4. India recognized globally among 23 countries for effective gender budgeting initiatives.
5. Establishment of Gender Budgeting Cells across ministries enhanced accountability and transparency.

2. Discuss the significance of the Gender Budgeting Act in promoting gender equity.

1. The proposed Gender Budgeting Act aims to establish a legal framework for gender-responsive policies.
2. It would enhance transparency in fund allocation and expenditure classification.
3. A legal provision could guide ministries in effectively implementing gender budgeting strategies.
4. Strengthening accountability can lead to more targeted outcomes for women’s welfare.
5. Legal backing may encourage sustained political commitment towards gender equity initiatives.

3. Analyse the role of state governments in implementing gender budgeting initiatives.

1. Odisha was the first state to adopt gender budgeting in 2004-05, setting a precedent.
2. In 2024-25, 11 states presented Gender Budget Statements, showcasing growing recognition.
3. State governments are responsible for tailoring national policies to local needs and contexts.
4. Implementation at the state level can enhance community-level impact and accountability.
5. Collaboration between central and state governments can strengthen gender budgeting frameworks.

4. With suitable examples, discuss the challenges faced in achieving gender equity through budgeting.

1. Limited awareness and understanding of gender budgeting among stakeholders can hinder effectiveness.
2. Inadequate data collection and analysis makes it challenging to assess impact and needs.
3. Resistance from traditional structures may obstruct the implementation of gender-focused initiatives.
4. Insufficient allocation of funds in certain sectors limits the reach of gender budgeting efforts.
5. Part C schemes may lack sufficient attention, leading to inequitable distribution of resources.