Understanding gender budgeting

This aspect of the Union Budget is reflective of the concept of “gender budgeting”. Simply put, gender budgeting is a strategy tool that Governments across the world (including India)^[1] rely on, in order to reduce gender disparities and achieve gender equality goals in the long run. It focuses on the creation of gender-sensitive policies and legislations. It also ensures equitable and efficient allocation of public resources based on differing gender needs and priorities and to bridge gender gaps. In fact, as per Nirmala Sitharaman, the Union Budget signals the Government’s objective of enhancing women’s role in the country’s economic development.

Addressing gender disparities

In India, voiceless growth prevails. The rate of women’s participation in the workforce remains low, despite the country’s economic growth forecast being bright. As per the World Economic Forum’s Global Gender Gap Index 2023 Edition^[2], India ranks 127 out of 146 countries and has achieved a dismal 36.7% parity on the ‘Economic Participation and Opportunity sub-index. Even the Government issued the Periodic Labour Force Survey Report 2022-2023^[3] has calculated the “female labour force participation rate” to be 37%, as of 2023.

A vast amount of sociological literature (such as the State of Working India Report 2023)^[4] highlights that women tend to leave the workforce in large numbers to perform unpaid care roles, particularly after childbirth — a requirement strongly reinforced by societal gender norms. While the patriarchy celebrates this as one of the many “sacrifices” expected of a good mother, it is, in simple economic terms, the creation of an inefficiency. An inefficiency which can be easily reduced by providing women with the necessary support and infrastructure. Former Chief Executive Officer (CEO) and Chairperson of PepsiCo, Indira Nooyi, has emphasised the need for companies to provide a care ecosystem for women (such as childcare or after-school care facilities) not only to alleviate their burden as primary caregivers but also to enable them to focus on their jobs.

Conclusion

A hopeful perspective on this year’s Union Budget is that the Government is taking measures to increase and retain women’s participation in the workforce. The gains from such measures, if concretised, will have a positive intergenerational impact as well. However, any analysis of Government schemes and fiscal incentives calls for cautious optimism. A trickle-down of the benefits of allocation to on-ground disbursement and implementation may be a bumpy road. Nevertheless, for now, it is definitely a noteworthy progress that budgetary allocation is being considered at the Ministerial level through a gender lens.

Footnote

[1] Ministry of Women and Child Development, Government of India, Mission Shakti: Gender Budgeting Scheme: Standard Operating Procedures for Grant-in-Aid for Training.

[2] World Economic Forum, Global Gender Gap Report 2023.

[3] Ministry of Women and Child Development, Nari Shakti Surges Ahead!: Female Labour Force Participation Rate Jumps to 37.0%.

[4] State of Working India 2023: Social Identities and Labour Market Outcomes.

This article was originally published in SCC Online on 16 August 2024 Co-written by: Protiti Roy, Principal Associate; Shaileja Verma, Senior Associate. Click here for original article

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