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Budgeting for Gender-Inclusive ‘Viksit Bharat’
Introduction:
The Union Budget 2025-26 underscores the government’s commitment to inclusive development and prioritizes the welfare of four key groups: the poor, youth, farmers, and women.
- The vision for Viksit Bharat 2047 includes zero poverty, universal quality education, 100% skilled labour, 70% women’s economic participation, and making India the food basket of the world.
- Gender-responsive budgeting (GRB) plays a crucial role in achieving this vision by mainstreaming gender concerns into policy and financial allocations.
Understanding Gender Budgeting
- Introduced in 2005-06, Gender Budgeting is a fiscal tool for promoting gender equality by assessing the impact of government spending on women.
- It is not a separate budget but an approach to integrating gender perspectives into all sectors.
- The Gender Budget Statement (GBS) is divided into three parts:
- Part A: Schemes exclusively benefiting women (100% allocation).
- Part B: Schemes with at least 30% allocation for women.
- Part C: Schemes with less than 30% allocation for women (e.g., PM-Kisan with ₹15,000 crore).
Key Highlights of Gender Budget 2025-26
- Increased Gender Budget Allocation
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- Gender budget allocation increased to 8.8% of the total budget (up from 6.8% in 2024-25).
- ₹4.49 lakh crore allocated across 49 Union Ministries.
- Inclusion of 12 new Ministries from non-conventional sectors like Railways, Ports, Shipping, Land Resources, and Pharmaceuticals in gender budgeting.
- Enhancing Female Labour Force Participation Rate (FLFPR)
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- FLFPR increased from 33% (2021-22) to 42% (2023-24) but remains below the global average of 47%.
- The government aims for 70% women’s participation in economic activities by 2047.
- Investments in skilling, employment, entrepreneurship, and social security for women.
- Schemes and Initiatives for Women’s Economic Participation
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- Key programmes witnessing increased allocation (₹1.24 lakh crore):
- Skill India Programme
- Entrepreneurship and Skill Development Programme (ESDP)
- National Skill Training Institutes
- Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM)
- Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
- PM Employment Generation Programme
- PM Vishwakarma
- Krishonnati Yojana
- 52% of these funds are directed towards women and girls.
- Key programmes witnessing increased allocation (₹1.24 lakh crore):
- Formalising Women in the Informal and Gig Economy
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- 90% of working women are in the informal sector.
- Gig workers to be formalized through identity cards and e-Shram portal registration.
- Provides access to social security benefits and financial inclusion.
- Need for labour law enforcement, maternity benefits, and social security measures.
- Promoting Women in Technology and AI
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- Centre of Excellence on AI for Education to promote women in digital learning.
- ₹600 crore gender budget under India AI Mission for inclusive AI applications.
- Emphasis on digital education, skilling, and enterprise training for women.
- Strengthening Financial Inclusion for Women Entrepreneurs
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- 20.5% of MSMEs are women-owned, employing 27 million people.
- Need for collateral-free loans, alternative credit scoring, and financial literacy programmes.
- 30 million additional women-led businesses can create 150-170 million jobs (Bain & Co. & Google study).
- Women in Agriculture and Rural Development
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- Women play a significant role in agriculture and allied activities.
- Need for simplified documentation for financial access, e.g., delinking Kisan Credit Cards from land ownership.
- Gender-disaggregated data to track and improve women’s access to schemes.
Challenges in Implementation
- Low awareness of gender budgeting across government departments.
- Limited capacity building for officials on gender-responsive policy design.
- Social and cultural norms restricting women’s participation in labour markets and entrepreneurship.
- Need for real-time monitoring and impact assessment using gender-disaggregated data.
Way Forward
- Strengthening Policy Implementation
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- Ensure effective execution of gender-responsive policies at state and district levels.
- Mandate gender impact assessments for all major schemes.
- Expanding Social Protection and Economic Security
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- Provide universal maternity benefits and social security for informal workers.
- Strengthen labour laws to ensure equal pay, job security, and workplace safety.
- Enhancing Digital and Financial Inclusion
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- Increase access to digital platforms for education, skilling, and entrepreneurship.
- Promote gender-sensitive banking products and alternative credit assessments.
- Fostering Behavioural and Social Norm Changes
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- Conduct nationwide awareness campaigns on women’s rights and economic participation.
- Engage men and communities in addressing gender stereotypes and biases.
