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Gender Budgeting in Union Budget 2025-26
Context:
As India marks two decades of gender budgeting, the 2025-26 Union Budget sets an ambitious vision for women-led development, aligning with the broader goal of Viksit Bharat 2047.
Understanding Gender Budgeting
- India’s Gender Budgeting, introduced in 2005-06, is a tool for gender mainstreaming that applies a gender lens to policy and budgetary processes.
- Gender Budgeting is a fiscal tool that assesses government spending through a gender lens to promote gender equality.
- It is not a separate budget but rather an approach to assessing the impact of government policies and expenditures on women and girls.
- The Gender Budget Statement is divided into two parts:
- Part A: Covers 100% women-specific schemes.
- Part B: Includes pro-women schemes where at least 30% of the allocation benefits women.
- Part C schemes with less than 30% provisioning for women.
- The PM Kisan scheme in the agriculture sector has been reported in part C with an outlay of ₹15,000 crore.
Provisions in Budget 2025-26 for Women-Led Development
- The Budget prioritises increasing the Female Labor Force Participation Rate (FLFPR) to 70%.
- Women’s employment, education, health, and security remain key focus areas.
- Specific gender-responsive allocations have been made in agriculture, entrepreneurship, and rural development.
Key Schemes and Initiatives Related to Gender Budgeting
- Gender Budgeting in Flagship Schemes
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- MGNREGS: Allocation increased to INR 40,000 crore; 57.8% of workers are women.
- PMAY-Urban & Rural: Increased funding, but concerns remain about women’s property ownership.
- National Mission on Education through ICT (NMEICT): 100% gender allocation but funding reduced.
- Mission Shakti: Focuses on women’s safety and empowerment with increased allocations.
- Initiatives for Employment and First-Time Entrepreneurship
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- PM Employment Generation Programme (PMEGP): Budget cut from INR 1,012.50 crore to INR 862.50 crore.
- Women Entrepreneurship Initiative: Provides term loans up to INR 2 crore over the next five years.
- Agriculture & Rural Workforce: 80% of women work in agriculture, but only 13.9% own land; Krishonnati Yojana lacks specific gender provisions.
- Initiatives for Education
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- STEM Inclusion: Women make up 40% of STEM graduates but only 14% in STEM employment.
- Samagra Shiksha Abhiyan: Allocation increased to INR 12,375 crore.
- PM SHRI Schools Scheme: Funding increased to INR 2,250 crore.
- Digital Gender Divide: NMEICT allocation reduced from INR 551.25 crore to INR 229.25 crore.
- Initiatives for Housing
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- PMAY-Urban: Budget raised from INR 15,170 crore to INR 23,294 crore.
- PMAY-Rural (PMAY-G): Increased from INR 32,500 crore to INR 54,832 crore.
- Women’s Ownership: 73% of PMAY-G houses registered under women’s names, but gaps remain.
- Initiatives for Health
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- Saksham Anganwadi and Poshan 2.0: Budget stagnates at INR 450.98 crore.
- Ayushman Bharat (PMJAY): Allocation increased to INR 4,482.90 crore but only 30% designated for women.
- Menstrual Hygiene Scheme: Placed in Part B, suggesting only partial funding benefits women.
- Matru Vandana Yojana: INR 6,000 maternity benefit remains unchanged since 2013.
- Anganwadi Workers’ Pay: Remains inadequate, highlighting neglect of women’s health workers.
- Initiatives for Safety and Security
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- Nirbhaya Fund: Increased from INR 180 crore to INR 200 crore, but 74% of allocated funds remain unspent.
- Mission Shakti – Sambal & Samarthya:
- Sambal (Safety Measures): INR 629 crore allocation unchanged from 2023-24.
- Samarthya (Empowerment): Budget increased from INR 953.74 crore to INR 2,396 crore.
- Public Transport Safety: No major investments; 91% of urban women report transport insecurity.
Challenges in Gender Budgeting
- Misallocation & Underutilisation: Many schemes are placed under Part B, meaning only a portion directly benefits women.
- Insufficient Funding for Key Areas: Reductions in PMEGP and NMEICT undermine entrepreneurship and digital literacy.
- Inflated Gender Budget Figures: Moving schemes like PMAY-Urban to Part A distorts actual gender-focused spending.
- Lack of Gender-Disaggregated Data: Poor tracking of impact on women-specific programs.
- Neglect of Care Economy: Unpaid care work, which accounts for 15-17% of GDP, remains unaddressed.
Way Forward for Strengthening Gender-Responsive Budgeting
- Implementing Gender Budgeting Act: Institutionalise gender-based budgeting across all ministries and states.
- Developing Human Capital: Increase investments in education, health, and skill development.
- Supporting Women Entrepreneurs: Expand credit access, incubation programs, and financial literacy initiatives.
- Addressing Unpaid Care Work: Introduce paid leave policies, care service subsidies, and caregiver training.
- Climate Resilience for Women: Target funding to women in agriculture, climate adaptation, and disaster relief.
