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Context
In 2024-25 Budget, the commitment to women empowerment was reflected in Budget allocations to pro-women programmes, as reported by the Gender Budget Statement (GBS).
Gender Budget Statement
- The Gender Budget Statement, is an important tool for reporting allocations made for women in the Union Budget.
- Also known as the Gender Responsive Budget (GRB), the GBS is not a separate budget for women and girls but a statement of financial prioritisation through existing schemes.
- India formally adopted Gender Responsive Budgeting (GRB) in 2004-05.
Allocation categories
The GBS categorised allocations as:
- Part A recorded those schemes/programmes exclusively benefitting women with expenditure allocations of 100 per cent for women; and
- Part B included those schemes/programmes that indirectly benefited women and included all government interventions with allocations over 30-99 per cent earmarked for women.
The Ministry for Women and Child Development (MWCD) was the nodal ministry for all GRB activities and it pushed other ministries/departments to set up Gender Budget Cells.
Implementation of GRB in India
The objective of GRB has always been to integrate gender into policy planning and budgeting. It is not meant to be a procedural exercise of analysing expenditure statements and merely reporting women-centric allocations.
Gender Budgeting Handbook
- In 2015 a Gender Budgeting Handbook was also developed by UN Women India as part of a Technical Assistance Project with the Ministry of Women and Child Development, Government of India, and Asian Development Bank.
- This document is a Compilation of the Formats and Methodologies of the Gender Budget Statement in India.
- The Handbook provides ideas and tools to effectively roll out gender budgeting. It refers to a five-step framework proposed by Debbie Budlender, which was developed for the South African Women’s Budget Initiative.
Trends of GBS over the years
- In FY2023-24, the GBS constituted only 5% of the Government of India’s overall expenditure budget, a 0.2% decrease from previous year allocations.
- Further, over the years, out of total allocations in the GBS, Part B has had a greater proportional allocation than Part A.
- In FY2020-21, over 85% of actual expenditure was under Part B. While this was reduced to 54% in FY2021-22, allocations.
- This indicates a reduction in the financial prioritization of women and girls through schemes in the GBS. It highlights the need to examine which sectors the government prioritizes for spending on women and girls and to identify the gaps in the GBS.
2024-2025 Budget: Increase in Gender Budget Share
Record Allocation for Pro-Women Programmes
For the first time, the Gender Budget (GB) reached 1% of GDP estimates in 2024-25. Overall allocations for pro-women programmes have now surpassed ₹3 lakh crore. This represents a significant increase, with allocations to these schemes currently standing at approximately 6.8% of the total budget expenditure for 2024-25, a notable departure from the historical average of around 5%.
Reasons for the Increase
Introduction of Part ‘C’ in Gender Budgeting
- New Category for Pro-Women Schemes: The GB now includes Part ‘C,’ a third section dedicated to pro-women schemes with less than 30% provisioning for women.
- Significant Allocation: The PM Kisan scheme, which has been included in Part ‘C,’ has an outlay of ₹15,000 crore, constituting 25% of its total allocation. This addition has contributed to the increased share of GB.
Increase in Part A of Gender Budgeting
- Historical Allocation Trends: Previously, Part A of the GB, which reports expenditures on schemes with 100% allocation for women, represented 15-17% of overall allocations.
- Recent Surge: Since Budget Estimates (BE) 2023-24, there has been a significant increase in Part A allocations, raising its share to nearly 40% of the GB. This rise reflects a stronger emphasis on schemes with full allocation for women.
Reporting Changes and Anomalies
Change in Reporting for PMAY
Reclassification of PMAY: The Pradhan Mantri Awas Yojana (PMAY), both rural and urban, has been reclassified from Part B to Part A of the Gender Budget (GB). Previously, Part B reported programmes with 30-99% allocations for women, capturing only a portion of PMAY's expenditure. In the 2024-25 BE, the entire allocation of ₹80,670 crore for PMAY is now reported under Part A, reflecting a substantial increase in pro-women allocations. However, this reporting might be misleading as not all beneficiaries of PMAY are women.
Instances of Over-Reporting and Under-Reporting
- Over-Reporting in PMEGP: The PM Employment Generation Programme (PMEGP), which supports micro-businesses in the non-farm sector, has reported ₹920 crore (40% of the total allocation) in the GB. This allocation lacks detailed explanation, raising concerns about accuracy.
- Under-Reporting in NRLM: For the first time, the entire allocation for the National Rural Livelihoods Mission (NRLM) is reflected in Part A, indicating that 100% is dedicated to women and girls. Previously, only 50% was reported. This correction reflects accurate allocation but highlights past under-reporting.
- Missed Reporting for Women Entrepreneurs: Pro-women allocations for schemes like PM Vishwakarma, SVANidhi, and Stand-Up India are missing from the GB, despite their relevance to women entrepreneurs.
- Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): MGNREGS, with a significant allocation for women, is reported under Part B with ₹28,888.67 crore (33.6% of the total outlay). Given that women constituted 59.3% of all person-days under MGNREGS as of December 2023, the reflected allocation should align more closely with their actual share.
Recommendations for Improvement
Need for Transparent Reporting
- Incorporating Explanations: To minimize reporting anomalies, detailed explanations for allocations in the GB should be included. This will ensure greater accuracy in accounting and aid in gender audits.
- Systematic Approach: The GB should adopt a more scientific and systematic approach to reflect true gender-focused spending. Improved reporting practices are essential to track actual spending and impact effectively.
- Focus on Gender Responsive Budgeting: Enhanced reporting should not only increase the visibility of allocations but also ensure that government programmes are well-planned and designed to meet women's needs from the start. Gender responsive budgeting is crucial for closing gender gaps and promoting equitable economic growth.
Overall, while efforts to refine the GB reporting are evident, continued improvements are necessary to ensure that gender budgets accurately reflect and support women’s development across all government initiatives.
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PRACTICE QUESTION
Q. Discuss the concept of gender budgeting and its significance in promoting gender equality. Assess the challenges and suggest improvements for more effective gender budgeting in India.
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SOURCE: THE HINDU
