The Union Budget 2025-26 focuses on inclusive development, prioritizing the needs of the poor, youth, farmers, and women.

Big Boost for Women’s Welfare

• The gender budget has been increased to 8.8% of the total Budget, up from 6.8% last year—the highest allocation in 20 years.
• A total of ₹4.49 lakh crore has been set aside across 49 Union Ministries and departments to support women-centric programs.
• 12 new Ministries, including railways, ports, land resources, and food processing, have introduced gender budgeting, making it a government-wide initiative.
• This move ensures that gender equality is not just the responsibility of the Ministry of Women and Child Development but a collective effort across all government departments.

Why Gender Budgeting is Crucial to Tackle Today’s Challenges

Gender budgeting is essential to ensure that government spending actively supports women’s economic participation and empowerment. Here’s why:

1. More Women Are Joining the Workforce, But Challenges Remain

• Women’s participation in India’s workforce has grown from 33% in 2021-22 to 42% in 2023-24—a big step forward.
• We’re getting closer to the global average of 47%, but there’s still a huge gap compared to men’s 79% participation rate.
• To achieve the goal of 70% women’s participation by 2047, significant investments are needed in skilling, employment, entrepreneurship, and social security.

2. Government Schemes Are Helping, But Need More Support

The Budget has increased funding for key programs that empower women, including:

• Skill India Programme & Entrepreneurship Development – Helping women upskill and start businesses.
• National Rural Livelihoods Mission & MGNREGS – Providing job opportunities, especially in rural areas.
• PM Vishwakarma & Krishonnati Yojana – Encouraging women’s participation in traditional crafts and agriculture.
• New Schemes like Dhan-Dhaanya Krishi Yojana and first-time entrepreneurs’ schemes further boost opportunities.

3. Addressing Job Security for Women in the Informal Sector

• 90% of working women in India are in the informal sector, lacking job security and benefits.
• The Budget aims to formalize gig workers through identity cards and registration on the e-Shram portal, giving them access to social security and financial benefits.

4. Using AI and Technology for Women’s Empowerment

• The government has allocated ₹600 crore under the India AI Mission to invest in AI-driven education and skill training for women.
• This ensures women are ready for new-age digital jobs and can thrive in a technology-driven world.

5. Supporting Women in Business and Agriculture

• Women own 20.5% of MSMEs in India, employing 27 million people.
• Expanding women-owned businesses could create up to 170 million jobs, a huge boost to India’s economy.
• Financial institutions need to recognize and support women entrepreneurs and farmers, as they play crucial roles in driving economic growth.

Bottom Line: Gender budgeting ensures that women get the right skills, jobs, security, and business opportunities—making India’s economic growth truly inclusive and sustainable.

Way Forward

• For Women Farmers: The government is making it easier for women in agriculture to get loans by removing complex paperwork. For example, Kisan Credit Cards will no longer be tied to land ownership, so women farmers can access credit more easily to boost their crop yields, productivity, and farm expansion.
• For Women Entrepreneurs: More women-led businesses can thrive with easier access to finance through collateral-free loans, alternative credit checks, and financial literacy programs. This will help them grow their businesses and contribute to the economy.
• Tracking Progress: To ensure these schemes are actually benefiting women, the government will track how many women are using them through gender-specific data. This will help improve policies and ensure better financial and social security support for women.

#BACK2BASICS: Gender Budgeting: Definition, Evolution in India, and Components

What is Gender Budgeting?

Gender budgeting is a strategy to ensure that government budgets address gender equality by allocating funds to programs that benefit women and bridge gender gaps. It is not a separate budget but a way to analyze and restructure financial planning to promote gender-sensitive policies.

Evolution of Gender Budgeting in India

Components of Gender Budgeting with Examples