Budgetary allocation through a gender lens

In the presentation of the Union Budget, 2024, finance minister, Nirmala Sitharaman, announced that one of the government’s priorities will be employment and skilling, 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’s empowerment. It promises to prioritise the setting up of working women hostels and creches. Organising women-specific skilling 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 creches, while provisioning 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 crore 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), Palna (national creche scheme), Pradhan Mantri Matru Vandana Yojana and National Hub for Women Empowerment/Gender Budgeting/Research/Skilling/Training/Media Advocacy have been allocated RS 3,145 crore. Schemes such as Deendayal Antyodaya Yojana-National Rural Livelihoods Mission, which aims to support self-help groups in rural areas have been allocated ₹15,047 crore.

This aspect of the budget is reflective of the concept of gender budgeting. Simply put, gender budgeting is a strategy tool that Governments across the world (including India) 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 budget signals the government’s objective of enhancing women’s role in the country’s economic development.

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 Edition, India ranks 127 out of 146 countries and has achieved a dismal 36.7% parity on the Economic Participation and Opportunity index. Even the government-issued Periodic Labour Force Survey Report 2022-23 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) 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 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.

A hopeful perspective on this year’s 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 inter-generational 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 definite progress to note that budgetary allocation is being considered at the ministerial level through a gender lens.

This article is authored by Protiti Roy, principal associate and Shaileja Verma, senior associate, Shardul Amarchand Mangaldas & Co, New Delhi.