Budgetary Allocation through a Gender Lens

Overview

During the presentation of the Union Budget 2024, Finance Minister, Nirmala Sitharaman, announced that one of the Government’s priorities would be to provide employment and skill-development, with a particular focus on higher participation of women in the workforce. Unlike previous Budgets, this year’s Budget provides a fresh outlook on women empowerment. It promises to prioritise the setting up of working women hostels and crèches. Organising women-specific skill-development programmes and promoting market access for “self-help group” enterprises is touted to be another focal point. The dual proposals of establishing women’s hostels and crèches, while providing for upskilling programmes for women can improve their capacity to enter the workforce, as well as create conditions to retain women workers inside the paid economy.

Another noteworthy aspect of this Budget is that it earmarks over 3 lakh crores (i.e. 3 trillion ) rupees for women-oriented schemes. Schemes for women’s safety and empowerment under “Mission Shakti”, such as Beti Bachao Beti Padhao, Sakhi Niwas (working women hostels), Paalna (National Crèche Scheme), Pradhan Mantri Matru Vandana Yojana and National Hub for women empowerment/gender budgeting/research/skilling/training/media advocacy have been allocated Rs. 3145 crores. Schemes such as “Deendayal Antyodaya Yojana — National Rural Livelihoods Mission”, which aim to support self-help groups in rural areas have been allocated Rs. 15,047 crores.

Understanding gender budgeting

This aspect of the Union Budget is reflective of the concept of “gender budgeting”. Simply put, gender budgeting is a strategy tool that Governments across the world (including India)¹ rely on, in order to reduce gender disparities and achieve gender equality goals in the long run. It focuses on the creation of gender-sensitive policies and legislations. It also ensures equitable and efficient allocation of public resources based on differing gender needs and priorities and to bridge gender gaps. In fact, as per Nirmala Sitharaman, the Union Budget signals the Government’s objective of enhancing women’s role in the country’s economic development.

Addressing gender disparities

In India, voiceless growth prevails. The rate of women’s participation in the workforce remains low, despite the country’s economic growth forecast being bright. As per the World Economic Forum’s Global Gender Gap Index 2023 Edition², India ranks 127 out of 146 countries and has achieved a dismal 36.7% parity on the ‘Economic Participation and Opportunity sub-index. Even the Government issued the Periodic Labour Force Survey Report 2022-2023³ has calculated the “female labour force participation rate” to be 37%, as of 2023.

A vast amount of sociological literature (such as the State of Working India Report 2023)⁴ highlights that women tend to leave the workforce in large numbers to perform unpaid care roles, particularly after childbirth — a requirement strongly reinforced by societal gender norms. While the patriarchy celebrates this as one of the many “sacrifices” expected of a good mother, it is, in simple economic terms, the creation of an inefficiency. An inefficiency which can be easily reduced by providing women with the necessary support and infrastructure. Former Chief Executive Officer (CEO) and Chairperson of PepsiCo, Indira Nooyi, has emphasised the need for companies to provide a care ecosystem for women (such as childcare or after-school care facilities) not only to alleviate their burden as primary caregivers but also to enable them to focus on their jobs.

Conclusion

A hopeful perspective on this year’s Union Budget is that the Government is taking measures to increase and retain women’s participation in the workforce. The gains from such measures, if concretised, will have a positive intergenerational impact as well. However, any analysis of Government schemes and fiscal incentives calls for cautious optimism. A trickle-down of the benefits of allocation to on-ground disbursement and implementation may be a bumpy road. Nevertheless, for now, it is definitely a noteworthy progress that budgetary allocation is being considered at the Ministerial level through a gender lens.