About Gender Budget Statement

Context:

The 2024-25 Budget marks a significant milestone in promoting women-led development by allocating 1% of India’s Gross Domestic Product (GDP) to the Gender Budget Statement (GBS) for the first time. This allocation translates into more than ₹3 lakh crore directed towards initiatives and programs aimed at empowering women, showcasing a robust commitment to gender equality and women’s economic and social advancement.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. Enhanced Focus on Gender-Specific Initiatives in the GBS 2024-25:
2. Exploring Gender Budgeting: A Strategic Framework
3. Challenges Impacting Gender Budgeting in India

Enhanced Focus on Gender-Specific Initiatives in the GBS 2024-25:

• Increased Financial Commitment:
  • The allocation for women-centered programs has increased to about 6.8% of the total budget for 2024-25, up from the usual 5%.
• Structural Changes in Reporting:
  • Introduction of Part C in the budget, focusing on schemes that allocate up to 30% for women, including prominent initiatives like the PM Kisan scheme.
• Allocation Distribution:
  • Part A: Targets schemes exclusively for women like SAMARTHYA and now includes the Pradhan Mantri Awas Yojana (PMAY), making up nearly 40% of the allocations.
  • Part B: Covers schemes with 30% to 99% of spending directed towards women-related components, such as PM AJAY – Adarsh Gram Yojana.

Exploring Gender Budgeting: A Strategic Framework

• Definition and Application:
  • Gender budgeting is a strategic methodology adopted by governments to allocate public resources efficiently, catering to the varied needs of different gender groups within the population.
  • It emphasizes integrating women’s specific needs into the existing financial frameworks without necessitating a separate budget.
• Legal and Policy Framework:
  • In 1993, India endorsed the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), demonstrating its dedication to fostering gender equality.
  • The first Gender Budget Statement was incorporated into the Indian national budget for 2005-2006, marking a consistent practice in subsequent budgets.
• Institutional Mechanisms:
  • The Ministry of Women and Child Development (MWCD) serves as the pivotal body for gender budgeting initiatives, supported by Gender Budget Cells established across various central ministries.
• Operational Strategy under Mission Shakti:
  • Gender budgeting is operationalized under the Samarthya initiative, part of the broader Mission Shakti campaign aimed at empowering women.

Methodology of Gender Budgeting:

• The process involves a series of steps to ensure gender considerations are reflected throughout the budget cycle:
  1. Situation Analysis: Evaluating the status quo of gender groups in different sectors.
  2. Policy Assessment: Scrutinizing policies to ascertain their impact on gender issues.
  3. Budget Evaluation: Checking the adequacy of budget allocations for gender-focused actions.
  4. Expenditure Monitoring: Ensuring allocated funds are utilized as intended.
  5. Impact Assessment: Measuring the effectiveness of policies on initial gender-related conditions.

Significance and Impact:

• Gender budgeting aims to direct funding to areas with notable gender disparities, thus addressing key societal needs.
• It aligns with global commitments such as the Sustainable Development Goal 5, promoting gender equality.
• This approach enhances transparency in budget management, ensuring that gender equality commitments are fulfilled effectively.
• By integrating gender perspectives into fiscal planning, gender budgeting fosters more inclusive and effective governance.

Challenges Impacting Gender Budgeting in India

• Inaccurate Allocation Reporting:
  • Programs such as the PM Employment Generation Programme (PMEGP) have reported inflated allocations in the Gender Budget Statement (GBS), with instances like a reported ₹920 crore representing 40% of the total allocation without adequate justification.
• Underreporting of Women’s Needs:
  • Essential programs intended for women, such as the National Rural Livelihoods Mission (NRLM), have historically been underreported, although recent updates show improvements in accuracy.
• Discrepancy in Allocation vs. Utilization:
  • The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) illustrates this issue, where only 33.6% of its budget is allocated to women, despite them accounting for 59.3% of all person days worked, suggesting a misalignment between allocation and actual beneficiary engagement.
• Incomplete Coverage of Women-Centric Schemes:
  • Entrepreneurial schemes targeting women, including PM Vishwakarma, PM SVANidhi, and Stand-Up India, are not comprehensively reported within the gender budgeting framework.
• Neglected Sectors:
  • Critical sectors that significantly affect women, such as transportation, water collection, and water security, are often overlooked in gender budgeting efforts.

-Source: The Hindu