31-August-2024-Special-Article

GENDER BUDGET STATEMENT (GBS) 2024-25

The 2024-25 Union Budget of India marks a significant milestone in gender-focused financial planning. For the first time, allocations for women-led development have reached 1% of the Gross Domestic Product (GDP), with funding surpassing ₹3 lakh crore.

Key Highlights of GBS 2024-25

Increased Pro-Women Allocations

• Current Allocation: The budget for pro-women initiatives has increased to approximately 6.8% of the total expenditure for 2024-25. This is a notable rise from the historical average of around 5%.
• Significance: This increase reflects a stronger commitment to addressing gender-specific needs and priorities through government funding.

New Reporting Structure

• Introduction of Part C: A new section, Part C, has been added to the GBS. This section includes schemes where up to 30% of the allocation benefits women, such as the PM Kisan scheme.
• Previous Structure: The GBS previously had two parts:
  • Part A: Included schemes with full (100%) allocation for women, like SAMARTHYA, which now constitute nearly 40% of the GBS allocations. This includes the Pradhan Mantri Awas Yojana (PMAY).
  • Part B: Covered schemes with 30% to 99% of the budget spent on women-related components, such as the PM AJAY – Adarsh Gram Yojana.

What is Gender Budgeting?

Gender budgeting is a method used by governments to allocate resources in a way that addresses the needs and priorities of different genders. It doesn’t mean creating a separate budget solely for women but integrates gender considerations into existing budgets.

Background

• International Commitment: India ratified the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) in 1993, committing to gender equality.
• Implementation: The Gender Budget Statement was first introduced in India’s budget for 2005-2006. Since then, it has been released annually alongside the Union Budget.
• Nodal Agency: The Ministry of Women and Child Development (MWCD) oversees gender budgeting in India. Gender Budget Cells have been established in all central ministries and departments.

Framework for Gender Budgeting

• Situation Analysis: Assess the conditions and needs of different gender groups.
• Policy Assessment: Review if current policies address identified gender issues effectively.
• Budget Evaluation: Determine if budget allocations are sufficient for gender-sensitive actions.
• Expenditure Monitoring: Ensure funds are used as intended and evaluate the outcomes.
• Impact Assessment: Measure how policies impact the initial conditions and goals.

Significance

• Resource Optimization: Helps direct funds to areas with significant gender disparities.
• Support for SDGs: Aligns with Sustainable Development Goal 5, which aims for gender equality.
• Accountability: Enhances transparency in how funds are allocated and used for gender-related initiatives.
• Governance Improvement: Integrates gender perspectives into financial management, leading to more inclusive governance.

Challenges in Gender Budgeting in India

Over-Reporting

• Issue: Some programs, like the PM Employment Generation Programme (PMEGP), show inflated figures in the GBS. For instance, ₹920 crore (40% of the total allocation) is reported without adequate justification.
• Consequence: Inflated reporting can misrepresent the actual financial commitment to gender-specific initiatives.

Under-Reporting and Missing Allocations

Inaccurate Reporting: Key allocations for women’s needs are often understated. For example:

• National Rural Livelihoods Mission (NRLM): This program, which is fully dedicated to women, was not accurately reflected in past reports.
• MGNREGS: This scheme, benefiting women significantly, was reported under Part B with only 33.6% of its budget, despite women accounting for 59.3% of the total workdays.
• Women Entrepreneurs: Schemes like PM Vishwakarma, SVANidhi, and Stand-Up India are not fully reported.

Neglect of Key Sectors

• Ignored Areas: Critical sectors affecting women, such as transportation, water collection, and water security, are often overlooked in gender budgeting.

Way Forward

Enhance Reporting Transparency and Accuracy

• Detailed Reporting: Provide clear explanations for all entries in the GBS to improve transparency. Ensure accurate reporting of allocations and expenditures related to women’s needs.

Expand Scope and Coverage

• Broader Inclusion: Include a wider range of programs impacting women, particularly in neglected sectors like transportation and water security.

Regular Reviews and Updates

• Continuous Improvement: Regularly update the GBS methodology based on the latest data and insights. Periodic reviews should assess the effectiveness of gender-responsive budgeting.

Integrate Gender Sensitivity in Planning

• Target Setting: Establish clear gender equality targets and allocate resources accordingly to ensure that government programs incorporate gender considerations from the start.

By addressing these challenges and implementing these measures, India can further enhance its gender budgeting practices, ensuring that financial resources effectively support gender equality and women’s empowerment.

Mains question:

1. Discuss the significance of the Gender Budget Statement (GBS) 2024-25 in advancing gender equality in India, and analyse the key challenges in its implementation. (150 WORDS)