Gender budgeting share in total expenditure to increase from 4.5% in 2014 to 6.8%, up by 18.9% in FY 2025 (YoY): RBI

As India completes 20 years of implementing gender budgeting policies, the share of gender budgeting in total expenditure is expected to increase from 4.5 per cent in 2014 to 6.8 per cent in 2024, according to a report by the Reserve Bank of India (RBI).

The gender budget allocation for 2024-25 is Rs 3.27 lakh crore, 18.9 per cent higher than the revised estimate for 2023-24.

The Centre’s gender budget has been classified into three parts. Part A includes schemes specifically benefiting women, while Part B includes programs where at least 30 percent of the funds are directed towards the welfare of women.

A new category, Part C, was introduced in 2024-25, focusing on schemes where less than 30 per cent of funds are allocated for women’s welfare.

The increase in Part A allocation, especially between 2021 and 2025, is driven by programs such as Pradhan Mantri Awas Yojana (housing for poor households) and LPG connections for underprivileged households, the RBI report said.

The RBI also said that gender budgeting has brought about significant changes in India’s fiscal policies, thereby promoting gender equality in education, healthcare and infrastructure. India is one of the 23 countries recognized globally for its efforts in this field.

It states, “Gender budgeting has driven changes in India’s fiscal policies for education, health and infrastructure, thereby advancing gender-oriented goals in India.”

The report suggests that transparency and effectiveness in pursuing gender-oriented goals can be further strengthened by introducing clearer mechanisms to classify expenditures and implementing legal frameworks such as the proposed Gender Budgeting Act.

“Additionally, the creation of a legal provision, such as the Gender Budgeting Act proposed by NITI Aayog in 2022, could provide a stronger framework to guide these efforts,” the report said.

For the 2024-25 financial year, the Ministry of Rural Development took 63.7 per cent of the Part A allocation, followed by Housing and Urban Affairs (23.3 per cent) and Petroleum and Natural Gas (8.1 per cent). These three ministries together constitute more than 95 per cent of the budgetary expenditure under Part A.

Gender budgeting, introduced in the Union Budget 2005–06, aims to ensure gender-responsive fiscal policies. The initiative gained momentum with the establishment of Gender Budgeting Cells in all ministries in 2007.

Odisha took the lead at the state level by adopting gender budgeting in 2004–05. During 2024-25, 11 states presented Gender Budget Statements (GBS).