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UPSC MainsGeneral Studies Paper IIIIndian EconomyPractice question

Mechanisms and Challenges of Gender Budgeting in India

Discuss the institutional and procedural mechanisms adopted for gender budgeting in India. Evaluate the challenges in translating budget allocations into measurable outcomes.

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How to approach

Begin by defining Gender Budgeting and citing its institutional inception in India along with recent budgetary data. In the body, detail the key institutional and procedural mechanisms including Statement 13 and Gender Budget Cells, followed by an evaluation of the constraints in translating financial outlays into gender outcomes. Conclude with structural reforms needed to bridge the outlay-outcome divide.

Model answer

554 words

Introduction

Gender Budgeting (GB) is a fiscal innovation that applies a gender lens to the entire budgetary process to ensure that commitments to gender equality are backed by resource allocations. Formally adopted in India in 2005-06 following the recommendations of the Ashok Lahiri Committee, the gender budget reached ₹3.27 lakh crore in the 2024-25 Union Budget, representing approximately 6.79% of total budgetary expenditure and about 1% of GDP.

Institutional and Procedural Mechanisms Adopted in India

India has institutionalised gender-responsive governance through administrative, fiscal, and reporting frameworks across various levels of government.

  • Nodal Governance and Gender Budget Cells (GBCs): The Ministry of Women and Child Development (MWCD) serves as the nodal ministry coordinating gender budgeting initiatives. GBCs have been established across more than 57 Central Ministries and Departments to facilitate internal gender audits and mainstream gender perspectives, supported by technical inputs and training from the National Institute of Public Finance and Policy (NIPFP).
  • Statement 13 (Expenditure Profile): Statement 13 of the Union Budget provides a transparent disclosure of gender-related allocations divided into distinct tiers:
    • Part A: Captures schemes with 100% targeted allocation for women, such as Mission Shakti, Beti Bachao Beti Padhao, and female ownership components of PMAY.
    • Part B: Reflects pro-women allocations where 30% to 99% of scheme outlays are oriented towards women (e.g., Mid-Day Meal Scheme, MGNREGA).
    • Part C: Introduced in 2024-25 to record schemes having women-oriented allocations of less than 30%, ensuring visibility for programmes such as PM-KISAN.
  • Annual Budget Circular Guidelines: The Department of Economic Affairs within the Ministry of Finance issues annual budget circulars mandating all ministries to formulate and submit gender-responsive expenditure appraisals and performance indicators.

Challenges in Translating Allocations into Measurable Outcomes

While allocations have increased in quantitative terms, translating outlays into meaningful gender outcomes encounters critical systemic hurdles.

  • Ex-Post Accounting over Ex-Ante Design: Gender budgeting functions primarily as an ex-post reporting exercise rather than an ex-ante planning tool. In Part B schemes, departments frequently apply an arbitrary flat attribution of 30% without conducting prior gender impact assessments.
  • Sex-Disaggregated Data (SDD) Deficit: The lack of sex-disaggregated administrative data in scheme Management Information Systems (MIS) and the Public Financial Management System (PFMS) restricts tracking the actual absorption of funds by women.
  • Federal Implementation Bottlenecks: Crucial social sectors directly impacting women, such as health, sanitation, and school education, are state subjects. However, state- and local-level institutionalisation of gender budgeting remains uneven and weakly coordinated with the Centre.
  • Dormant Institutional Architecture: Many GBCs lack full-time technical specialists, clear key performance indicators (KPIs), operational autonomy, or statutory backing to influence scheme design.
  • Persistence of Structural Gender Gaps: Budgetary expansion has not adequately alleviated multidimensional disparities, as evidenced by India ranking 129 out of 146 countries in the World Economic Forum's Global Gender Gap Index 2024, alongside high levels of female anaemia (57% under NFHS-5) and persistent gaps in female labour force participation.

Way Forward

To realise the intended goals of gender budgeting, India must introduce statutory gender audits by the Comptroller and Auditor General (CAG), embed gender tagging within PFMS digital architecture, and decentralise gender budgeting frameworks to Panchayati Raj Institutions to achieve Sustainable Development Goal 5.

Conclusion

Gender budgeting must evolve from a fiscal accounting routine into an outcome-oriented policy instrument. By synchronising ex-ante program design, granular sex-disaggregated data tracking, and decentralised implementation, public expenditure can effectively advance gender justice and women-led development.

Key facts to remember

definition
Gender Budgeting

A public financial management strategy that integrates a gender perspective into all stages of the budget cycle—from formulation and execution to auditing—to ensure equitable resource allocation.

statistic

The Gender Budget allocation reached ₹3.27 lakh crore in 2024-25, representing 6.79% of the total Union Budget expenditure and approximately 1% of GDP.

— Union Budget 2024-25
scheme
Statement 13 of the Expenditure Profile

A budgetary disclosure mechanism categorising Union expenditures into Part A (100% women-specific), Part B (30–99% women-oriented), and Part C (<30% women-oriented).

Frequently asked questions

What was the role of the Ashok Lahiri Committee in gender budgeting?

The Ashok Lahiri Committee (2004) recommended institutionalising gender budgeting across Union ministries, leading to the creation of Gender Budget Cells and the formal introduction of Statement 13 in the 2005-06 Union Budget.

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