Women-Led Development and Budget Allocations

Source-This post on Women-Led Development and Budget Allocations has been created based on the article “Analysing the Gender Budget of 2024-25″ published in “The Hindu” on 30 August 2024.

UPSC Syllabus-GS Paper 3- Government Budgeting.

Context– This year’s Budget emphasizes women-led development with increased funding for women-focused programs. The Gender Budget Statement (GBS) for 2024-25 has reached a record 1% of GDP, exceeding ₹3 lakh crore. Previously averaging around 5% of the total budget, allocations for pro-women schemes have now risen to about 6.8% of total budget.

What are the Reasons for Increased Allocations?

A) Introduction of Part ‘C’ in GBS- This new section reports on schemes where less than 30% of the budget is allocated to women. For ex- the PM Kisan scheme, with ₹15,000 crore allocated (25% of its total), is now included in Part C.

B) Increase in Part A Allocations– Part A of the GBS, which includes schemes with 100% women-specific funding, saw a major increase. Previously, Part A accounted for 15-17% of total allocations until BE 2022-23. From BE 2023-24, it increased to nearly 40%, largely due to the Pradhan Mantri Awas Yojana (PMAY) now being fully included in Part A.

What are the Issues with Reporting in the Gender Budget Statement (GBS)?

1) Over-Reporting- Over-reporting is seen in programs like the PM Employment Generation Programme (PMEGP), which helps entrepreneurs start non-farm micro businesses. The GBS lists ₹920 crore for PMEGP, showing 40% of its total budget, but does not clarify this allocation.

2) Under-Reporting-It affects the visibility of funds dedicated to women’s needs. For ex-

A) The full budget for the National Rural Livelihoods Mission (NRLM) is now correctly listed in Part A of the GBS, showing that all its funds are for women and girls. Before, only half of the NRLM budget was reported in Part B.

B) The GBS shows more funding for the Ministry of Electronics & IT but misses reporting on pro-women allocations in schemes like PM Vishwakarma, SVANidhi, and Stand-Up India.

A detailed article on Budget 2024-25 can be read here.

 What steps can be taken to address these issues?

1) Improving the Gender Budget Statement-To reduce inaccuracies, the GBS should include clear explanations for each entry. This will ensure accurate accounting, aid in gender audits, and enhance outcomes for women in government programs.

2) Effective Reporting and Spending-Detailed reporting should not only show higher allocations for women’s development but also ensure that funds are spent on well-designed programs that meet women’s needs

Question for practice

What are the reasons behind the increased allocations, and what are the issues with reporting in the Gender Budget Statement (GBS)?