E-Paper
Strategies for enhancement of gender budgeting in India
This article is authored by Cchavi Vasisht, associate fellow, Chintan Research Foundation, New Delhi.
This year’s International Women’s Day theme Give to Gain emphasises the power of reciprocity and support, i.e. when people, organisations, and communities give generously, opportunities for women increase. Whether through knowledge, resources, infrastructure, visibility, advocacy, education, training, mentoring, or time, contributing to an inclusive and equitable word. It is in this context, it is important to reflect on the success of gender budgeting (GB) that has transitioned from being a supplementary welfare mechanism to a strategic economic imperative. By expanding its coverage and allocations, it has created a durable institutional framework. This year’s Union Budget allocated a landmark ₹5 lakh crore for FY 2026/27.
By expanding the fiscal space for gender-specific interventions, the government is signalling that inclusive and equitable growth is the primary driver for Viksit Bharat 2047 as well as aligns with the international commitment of giving budget under the broader theme of Give to Gain. Yet there are a few challenges, as there continues to be mismatch in terms of allocations vs outcomes; in addition to being concentrated among a few social sector ministries and weak on mainstreaming women across economic and social spaces.
GB was incorporated into national budgets back in 2005-06, to integrate a gender perspective into the budget as the main national plan of public expenditure. The objective was to achieve gender equality and women’s empowerment by ensuring that government revenue and public expenditure meet differential gender needs. The technical architecture of India's gender budget statement (GBS) uses a three-tier categorisation to track the intensity of gender-specific targeting. Part A with 100% allocation includes schemes exclusively for women. Part B with 30-99% allocation represents the gender mainstreaming of general schemes. This category carries the highest risk of gender-washing but also the greatest opportunity for impact if audited strictly. And Part C with <30% allocation) include schemes with minor gendered components.
For the year 2026-27, ministries and departments reported an amount of ₹5 lakh crore in the GBS, which is an increase of 11.36% from ₹4.49 lakh crore in the year 2025-26. At present, 49 ministries and departments are engaged, spanning domains like health, education, rural development, labour, and home affairs, with implementation facilitated through dedicated gender budget cells (GBCs) in each ministry.
Early programmes in India focused on basic welfare services, aiming to develop women through targeted interventions. While these efforts improved outcomes in education and health, they often positioned women as passive beneficiaries. Over time, there was a shift in understanding which culminated in the national vision of women-led development (WLD), prominently articulated in India’s G20 presidency. WLD moves beyond welfare to emphasise agency, leadership, entrepreneurship, and economic participation, recognising women as drivers of social and economic transformation. Therefore, it is important to evaluate budgetary allocations and its impact on women.
The ministry of women and child development (MWCD) remains the anchor, with over 80% of its budget classified as gender-focused. Past years have seen the consolidation of multiple schemes under three flagship programmes, i.e. Saksham Anganwadi & POSHAN 2.0, Mission Shakti, and Mission Vatsalya, which marked a significant administrative reform during this period. Budget 2026 rose from ₹1,912 crore (2021-22) to ₹3,150 crore (2025–26), to bring robust transformation in aspects of women's safety, rehabilitation and economic empowerment.
One of the significant announcements has been the Self-Help Entrepreneurs (SHE) initiative which is an extension of the Lakhpati Didi scheme. The objective is to transform women from subsistence-level livelihoods to SHE, to establish community-owned retail outlets in every district and sell products to new markets. This will address the barrier of market access that has marginalised rural female producers. During my fieldwork in Mundra (Gujarat), Mumbai, and Tirora (Maharashtra) last year women entrepreneurs consistently stated restricted access to markets as a primary structural barrier to their growth and expansion of their businesses. These findings resonate with my PhD research on women entrepreneurs in Nepal, where similar market exclusions restrict women-led enterprises as micro or small scale despite evident entrepreneurial potential. Currently, the focus of this scheme seems to be in the rural areas, in the future this scheme can be extended to provide coverage for women entrepreneurs in urban areas too.
Further, investment in human capital serves as the bedrock for workforce participation. The government has also increased its spending on maternal care and welfare through the Saksham Anganwadi and POSHAN 2.0. An addition to this year’s budget was focus on mental health with the proposal of establishing NIMHANS in North India. NMHS data (2015-16) indicates that 15% of adults require mental health intervention which disproportionately increased for women. Other ministries such as health and family welfare provide for maternal and child health, nutrition and reproductive health services.
Similarly, ministry of education, deployed schemes to retain women in secondary and higher education. To tackle the safety concerns that force many women to drop out of educational institutions and thereby limit their economic freedom, this year’s budget mandates one girls’ hostel in every STEM (Science, Technology, Engineering, and Mathematics) institution per district. Additionally, the scheme indirectly promotes women to develop their skills in a non-traditional sector. Over time, the government could also expand upon these schemes beyond STEM institutions and include other streams as well.
The ministry of rural development is another primary driver of GB. The Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM) is the flagship mechanism in Part A, receiving ₹19,200 crore. Crucially, Part B schemes like MGNREGA contribute over ₹64,000 crore in indirect benefits. While these provide a vital social safety net, they often fund low-productivity labour, highlighting a gap between employment and high-value economic participation. Even the non‑traditional ministries are gradually entering the domain for specifically allocating gender budgets, such as new & renewable energy, home affairs, drinking water and sanitation, and social justice & empowerment.
While the macro-trajectory indicates a robust fiscal commitment, the efficacy of this expenditure is contingent upon the strategic deployment and utilisation of funds. First, the lack of gender-disaggregated data prevents accurate policy design. With literacy rates for SC and ST women standing at only 56.5% and 49.4% respectively, the inability to track intersectional disparities leaves the most vulnerable behind. Even digitisation, such as Aadhaar-linked PDS and digital-only applications (e.g., PM Ujjwala Yojana), has created new exclusions. Marginalised women often lack the digital literacy to navigate these systems, increasing their dependence on intermediaries.
Second, an exclusion gap exists where adolescent girls (ages 11-18) fall between child welfare and maternity programmes, leaving them without specialised nutrition or skill-building support. Third, sectoral gaps exist. PLFS data shows a concerning trend: The share of women in agriculture rose from 57% (2017-18) to 64.4% (2023-24), while rural service engagement remains stagnant at 10.5%. Fourth, the re-entry problem remains a major hurdle. There are currently no formal, large-scale schemes to facilitate workforce reintegration for women post-childbirth, leading to a significant loss of career momentum. Finally, funds intended for targeted development (TSP/SCSP) are frequently diverted to general infrastructure projects that do not directly benefit women. The low awareness of programs further exacerbates under-utilisation.
To ensure that the 9.37% allocation translates into genuine parity, the following strategic interventions are required. First, strict implementation of third-party impact auditing to ensure fiscal marksmanship, as done in countries like Rwanda and Bangladesh. In addition, there is a need to strengthen gender budgeting cells (GBCs) with expert consultants and senior leadership, emulating the specialised architectures of Karnataka’s FPI and the Kerala Planning Board.
Second, need to implement schemes to prevent debt traps within microfinance sectors. Third, there is a need for formal recognition and building care infrastructure for caregivers to reduce the unpaid labour burden. Fourth, dedicated returnship programmes are essential to mitigate career attrition following maternity leave. Finally, states amplify national investments and can be used as role models that can be emulated in other regions. Odisha’s Mission Shakti channels 44% via WSHGs for nutrition; Karnataka’s Fiscal Policy Institute enforces gender audits; and Kerala’s Kudumbashree enables participatory budgeting.
The Give to Gain theme for International Women’s Day 2026 is a clarion call to transform generosity into gender equality’s greatest accelerator. When governments allocate, corporations invest, and citizens advocate, women don’t just rise; entire economies soar. On March 8, 2026, let’s forge this reciprocal future: Give to Gain demands it, and India’s GB exemplifies this ethos, proving that fiscal investments in women’s strategic needs yield exponential societal returns. And even though the transition to a 9.37% gender budget allocation is a necessary condition for progress, it is not a sufficient one. There needs to be a coordinated approach through inter-ministerial as well as inter-state convergence to create gender-equitable policies, and thereby effectively integrating their needs into the broader national agenda.
This article is authored by Cchavi Vasisht, associate fellow, Chintan Research Foundation, New Delhi.
