Gender and

Economics
Importance of gender budgeting
Index Number : 14/BA/19891

FND 1213
Introduction to Gender
studies
First Year second

Introduction
In spite of the modern wave of sustainable economic development, gender inequalities and
rural poverty are some of the issues that have been addressed through the past years.
Allocation of resources in an efficient manner; being one of the key elements of economic
development have encouraged female involvement in economic activities equalizing men.
According to the World Bank data nearly 75% of men are engaged in productive economic
activities whereas the engagement of women in the economy is greatly at diverse depending
on the region. These disparities have made it concerned where the need of gender equalities
arose. Gender responsive budgeting; is recognized as one of the major tools in creating
gender equalities throughout the world.
Gender budgeting is planning, policy making and programming and monitoring the budget in
a gender sensitive way. The main objective of gender budgeting is to overcome the gender
gaps visible within a society so that the country could achieve common economic goals.
Neutral budgeting which was common in the world was identified as gender blindness as
the policies are probable of affecting the two genders differently. For instance, if the
government decides to promote quarrying and mining in the economy, the demand for male
laborers increase. In spite of the increase of employment opportunities within the country for
the male population, the demand for female population is declined. Gender budgeting which
was initiated by the Australian government in 1984 focused mainly on establishing
institutions which could improvise and reduce the gender gaps which were identified through
research. The fourth conference on Women held at Beijing in 1995 promoted the importance
of gender budgeting and was widespread among commonwealth nations including Sri Lanka.

The importance of gender budgeting

Although gender budgeting involves planning of economic policies, its benefits to a nation is
unabridged. Mainly the importance of gender budgeting can be identified in three
perspectives.
I.
II.
III.
IV.

Establishments of good governance and effectiveness

Advancements in social structure in creating equity and equality
Efficiency of resource allocation
Human rights

Despite the fact that the core objective of gender budgeting is to spread equality within the
gender roles of the society, the above objectives are implemented by initializing gender
budgeting policies. Therefore the framework and policies of gender budgeting which enhance
the gender equalities within the society, helps in development of the nation in the long term.

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Role of women in economic activities

To understand the importance of gender budgeting, to understand why a separate investment
(a budget) is needed in creating harmony between gender roles; first we should identify the
important contribution women make in aiding the development of the society.
Women are less known for their major contribution for the development of the society.
However, from the ancient eras, women have been engaged in economic activities despite the
fact they have not been taken into account. Women have been engaged in taking care of
children, nurturing them, and other household chores which have been identified as nonproductive activities. These activities do not add a value to the economy hence they are not
eligible of taken into account as productive economic activities. However, if they have not
been taking care of house hold matters or children, the society would be impacted with
uneducated children and untidy houses. The positive externalities created by women have not
been taken into account. The irony of washing your clothes by your mother and washing the
same cloth at laundry adding value to the national income/expenditure is not addressed
through economics.
The ratio of female to male labor force participation in 2014 is 68.8% and 88.3% in
developed and developing countries respectively (source: worldbankdata.org ) This further
depicts that theres a greater disparity within the female labor force in the developing
countries. Economics mainly focus on the efficient allocation of limited resources. Women;
being categorized as labor is not fully engaged in productive economics in some countries
which illustrates the inefficient use of female labor. Additionally, according to research done
by World Bank on gender mainstreaming in 2001, it has been identified that the societies
which contains greater disparities are likely to face less rapid economic growth.
The role of women in developing a society should not be taken likely, hence it is a main
reason of the emergence of gender budgeting which focuses on the gender gaps. By enclosing
these gaps, labor force of a country can be used efficiently seeking a healthy development in
the pertaining society.
Efficiency in resource allocation
Productive resources especially labor and capital is focused in gender budgeting. Achieving
the highest efficiency in allocating these resources in terms of the benefit of the society is one
of the key objectives that have been reinforced in gender budgeting. This efficiency in
allocation is achieved through various gender budgeting policies.

Empowering women improves the efficiency of the labor force.

Rules and regulations, policies, incentives and welfares have been established in an effort to
equalize the gender disparities visible amongst the society. Enhancement of leadership skills
of women have become a common instrument in empowering women in overcoming
obstacles they face in many walks of life. Establishing workshops to improve the personality
and confidence of women and leadership training are some examples to describe the effort in
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building strong confident women. The competencies achieved by women can offer challenges
in their careers which forces to be more proactive and more productive. Competencies and
skills achieved by these trained work force increases the efficiency of the labor, building
competition among men as well.
Gender budgeting also ensures a friendly environment for the women to work. This is mainly
achieved by promoting positive ideas among the society and establishing rules and
regulations against discriminations, and promoting business ethics are visible among many of
other policies introduced through gender budgeting. This enhances the work efficiency and
labor participation of women enhancing the efficiency of allocation of labor furthermore.
This is further assured with enhancing a safer environment for both men and women.
Insurance policies, rules, and regulations are some of the ways that a worker friendly
environment is ensured through gender budgeting. A workers efficiency is always enhanced
through a safer and sound environment. Open Society Institute inaugurated in 2001 in Russia
supported through gender budgeting policies which implemented in promoting awareness in
gender based discrimination in the labor market which was later introduced in federal budget
in 2002. This further denotes that governments in developed countries have supported
policies that created gender based equalities long time ago, in wanting to enhance the labor
efficiency in the labor market.

Increase of productivity

Empowering of women and constant analysis in gender budgeting has improved its
effectiveness in carrying out the plans and the policies. The constant monitoring of these
policies are ejaculated and encouraged by profits and discouraged by losses to the
government enhancing the improvement of the effectiveness of the policies. Through gender
mainstreaming too, such as improving skills and knowledge of the labor force, the country is
benefited by an equally talented labor force enhancing the productivity and in the long run
economic growth furthermore.
Research is one of the key elements when preparing a gender budget. The disparities that
could be seen within a region, a specific area is easily noted where individually these issues
are looked into. The generalizing issue of a fiscal policy is overcome by gender budgeting
through the framework which is being implemented always. Gender disparities unlike other
social issues are quite different from a place to place and from one social structure to another.
While the fiscal policy focuses on enhancing the income and improving the lifestyles through
price controls. If a policy is introduced where prices of fuel are lowered, it wouldnt affect for
the people who doesnt have vehicles. Although, reduction in fuel prices may affect the cost
of living in an indirect way, it still doesnt enhance the productivity or the capacity of people
in some areas. Through gender budgeting, solutions are applied properly after identifying the
issues by proper research. For instance, gender budgeting can be used in a way that improves
the quality life of a certain area through providing necessary privileges to enhance the
education of the person which benefits the society in the long run in an effective way. Gender
budgeting is an investment done by the government to enhance the social structure in aiding
the advancement of a society.
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Budget analysis is a strong point in gender budgeting, where needful policies are monitored
carefully. This analyze consists of thoroughly examining how public revenue and
expenditures are redistributed in a way that reduces the gender gap. This approach also
analyzes whether the implemented policies were effective in overcoming gender gaps in the
society. If the resulted objectives were not achieved within the framework, policy makers
carefully consider what other aspects could improve the current standards. Individuality,
transparency, and constant monitoring facilitates gender budgeting to be more
productive in allocation of capital resources and finance. The effectiveness of the policy
planning and allocation of capital, investing is carefully considered in gender budgeting
enabling the resource allocation of capital to be more productive and effective.
Addressing externalities
Negative and positive externalities are always created by various economic activities. The
improvement of infrastructure creates negative externalities such as pollution of the
environment. Investing capital in facilitating health benefits creates positive externalities in
many ways such as enhancing the productivity of labor force by healthy citizens and reducing
the cost for maintaining a patient which affects the government (this could be seen within Sri
Lanka) as well as the individual in a positive way. Gender budgeting is a useful instrument in
addressing these negative externalities and looking through unpaid labor which is carried out
by women.
In an under developed economy, women are responsible of taking care of house hold
activities and children which create positive externalities by nurturing good citizens to the
society. Commonly known as unpaid labor are addressed through gender budgeting. Through
empowering of women, policies are structured to improve the self sufficiency of women. If a
woman sews clothes to her family, this unpaid labor could be converted to a productive
economic activity through gender budgeting by providing infrastructure, necessary
knowledge, and machineries via gender budgeting. Women who dont have the knowledge or
background to look for a job are benefitted by these policies where self-employment is
encouraged. This closes the gap between the two gender roles where both of the parties
become independent. For example, with the increase of literacy rate of men and women, the
job opportunities have become quite challenging to men and women in Sri Lanka. Despite the
fact that through gender budgeting, womens self-employment is addressed, the infrastructure
creating job opportunities provided by the government was quite less. To address the negative
externality this came through higher literacy rate was later addressed through Mahinda
Chinthanaya by providing Lorries and trucks to increase vendors and business opportunities
for men. Some of positive externalities that is addressed via gender budgeting are allocation
of property rights in the benefit of women, increase of education and healthcare system, tax
allocation on harmful behavior such as reporting of gender based violence in a company.
Through gender budgeting, negative externalities created by competitive market economic
activities are further enclosed by careful planning and policies which the benefits are much
more reaped in the long run. Despite the ruling out of addressing externalities by the fiscal

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policies, gender budgeting can be used as an important tool in overcoming and achieving
economic equality and growth.
Economic policies relating to gender budgeting is varied from a region to a region
maybe from a country to a country. Adapting to these gender policies takes time and
careful planning which includes analyzing past experiences and policies implemented
countries which have a similar background.
Benefits gained through implementing micro and macro policies
Revenue and expenditure are main instruments which can be used to implement to confine
gender equalities. Taxation and expenditures to enhance gender based equalities are the major
instruments in enhancing structural changes in economic policies. Gender budgeting focus
only on policies that create gender equalities. However, gender budgeting can be useful in
terms establishing instabilities of the economy. Providing opportunities in the labor market
and managing favorable positions in terms of finance sector could result in eloping economic
drawbacks faced by the government.
Establishment of good governance
The framework administered in creating and analyzing gender budgets enhances the
transparency of the government which adversely helps initiate good and effective policies as
well as helps create efficiency in allocation of resource. Although different structural methods
or frameworks have been introduced by policy makers, range of approaches identified by
Butlender helps to understand the administration, creation and the approach of gender
budgeting.
1.
2.
3.
4.
5.
6.
7.

Gender-equality-oriented evaluation of political, economic strategies

Gender-sensitive check and analysis of individual financial priorities
Gender-oriented breakdown of the use of public funds (expenses)
Gender-oriented breakdown of public revenues
Gender-oriented breakdown of the impact of public funds on time management
Gender-equality focus in medium-term financial planning
Gender-equality-oriented explanation of budgets

The four pillars of good governance transparency, accountability, predictability, and

participation identified by economists are strengthened through gender budgeting tools.
Hence, gender budgeting is not simply reforming the policies, but it is series of planning
where positive and negative factors are being analyzed in the benefit of contracting the
visible gaps. The following framework allows the policy makers to visualize and rethink the
policies of the country which in adversely leads to the transparency of the objectives of the
government to the public. The most significance of this framework is it helps the policy
makers to analyze the disparities in an individuals perspective- a woman. Although problems
differ from a person to a person fiscal policies tend to resolve them in general which could
leave a possibility of not addressing the issue at all. In the point of transparency of fiscal
policies gender budgeting plays a greater role which benefits the common society. Good and
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effective policies are created through this framework which also paves the way in identifying
negativities of the existing policies.
Effective allocation of resources is made efficiently through policies that is implemented by
successful gender budgeting. By diminishing the gender gaps, more productive labour is
encouraged to engage in economic activities which lead to advancement in economy by
effective allocation of resources.
Advancements in social structure in creating equity and equality
Gender budgeting is mainly emphasized on reducing the inequalities between the two
identical roles; men and women. Thus, emphasizing on the social infrastructure helps to
narrow the indifferences between them. Despite the fact that society is changed with
globalization, the inequalities between rural and urban areas have extended more. The
contemporary ideas on gender roles, patriarchal society, and urbanization have defined
gender roles in a modern way where women and girls are still jacketed into their specific
gender roles in some regions.
Gender budgeting focuses on enhancing two points in order to suppress the gender roles that
has been given to them.
I.
II.

Education
Health

Education is one of the main disparities that create inequalities in under developed countries.
In certain societies females are not privileged to have proper education as they are trapped
with household work and other responsibilities they have been burdened with. In certain
societys education are meant for boys where girls help with household with their mother. The
main of role of a female is to provide the needful care for the men in the society.
Females being uneducated are ruled under, educated men where they engage in main
economic activities in the society. Many females drop out after receiving primary education
as they are forced to get discontinue due to many social conventions. According to UNESCO
statistics in 1997 the recorded drop outs in primary education of male is 25,000 whereas
number of females who dropped out of primary education is 40,000 in middle income
countries.
The uneducated women of these societies are a further burden to the society where the
dependency ratio per each person increases enhancing the poverty of the society. Poverty
stricken women are further faced with physical violence in uneducated societies forcing the
gender gap to broaden more. Unless the gender gap within the education is addressed the
economic capabilities, independency, and health of women are further more to apart them
from the males enhancing the male dominancy furthermore.
The education gender budgeting and budget analysis plays an important role in enhancing the
education level of young girls. Education gender budgeting provides the relevant facilities
and foundation in promoting education through every age. The key objective is not
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overlooked through the amount of finance invested to enhance the parity of education level
between the two genders. How effective the policies were in lowering the disparity is taken
into account. Creating even opportunities for male and female teachers, girls and boys in the
education system, and minimizing the gap of literacy levels between men and women are
some of the objectives that should be accomplished by enhancing a good education
environment to students.
Parity in education in all walks of life; recognized as a millennium development goal
emphasizes the importance of education gender budgeting in an advancement of a society.
The parity in education level among genders enables the citizens to be competence enough to
take on any challenge in economic activities which enhances the productivity of labour
enabling a long term economic growth. Trained labour and skill are essential in an
advancement of a society where it is nurtured by the education system of a society.
Health has been one of the major drawbacks in creating gender equality within the society.
Women has been dispatched of economic activities hence one of the reasons being limited to
household activities. Girls are unprivileged of continuing their education because of
menstruation and being uneducated of their reproductive health.
For example gender responsive budgeting in Sri Lanka initiated in 1997, were successful in
education and health sectors where investment was 48% and 56% respectively. In response
Sri Lanka achieved the standard of maintaining a high literacy rate and a higher life
expectancy rate in South Asia enclosing the gender gap. Another fact that can be expressed is,
countries with lower of ratio of number of girls to boys enrolled in education, GNP is
calculated to be 25% lower than in countries with a lower gender disparities.
This proves that gender budgeting is a useful instrument in overcoming inequalities
especially gender disparities visible within the society. Empowering of women through
lowering the gender gap of education and health is a main requirement in terms of certifying
the equality between the two gender identities and this can be achieved through the gender
budgeting.

Ensuring the human rights of citizens

One of the foremost responsive ways of ensuring human rights is through gender responsive
budgeting. The policies created through gender budgeting are carefully analyzed and
examined. The fiscal policies focuses only on the economic benefits whereas gender
budgeting is created to counteract the externalities created through economic activities. For
example, if a state owned company is privatized for economic benefits, gender budgeting
looks on for policies that could reduce the unemployment gap created through privatization
of the company.
The basic rights of humans, such as education, health, food securities, and housing facilities
which have created diversity among the society are provided through gender budgeting. For
example women who are self-employed have been provided with low interest housing loan
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facilities ensuring the basic needs of the humans by the government. Education being a basic
right of all children has been provided free of charge in most of the countries enhancing the
literacy of the society as well as providing basic needs for children. Policies have been made
to take actions against discriminations against women which enhance the law and order in the
society. The relief and trustworthiness ensuring the human rights are secured through gender
budgeting creating a safer environment for human beings.

Importance of gender budgeting in Sri Lanka

The first phase of gender budgeting initiated in 1997 in Sri Lanka stated the insignificance of
allocating money to create equality among gender in spite of countries less disparity in
literacy levels. However, effective gender budgeting should be still addressed in relation to
few observed circumstances.
I.

Low participation in economic activities

Sri Lanka being country is a country which is closer in closing the gender gap between males
and females. The literacy rates of young males versus young females in 2008 were 97.3% and
98.5%. Evidently, the literacy gap has is not visible in Sri Lanka. (Tradingeconomics.org)
However, in terms of labour participation, Sri Lanka still needs to improve. According to
LBS (labour force survey) in 2014, economically active female population is nearly as half as
the economically active male population. (Economically active males-65% and economically
active females 36%). The unemployment rate of males versus females takes a value 6%
and13% in the ages between 25-29 further proves the disparity between the two gender roles
in the society.
Despite the female population have a higher literacy rate in Sri Lanka, the job opportunities
in the economy has been unfair mainly because of unawareness, lack of gender empowerment
and contemporary issues. Gender budgeting plays a major role in attributing knowledgeable
skilled young women which can help the development process in Sri Lanka. Policies to make
the youth female population enhanced with skills has become a major disadvantage in terms
of job opportunities where they fail to take leadership skills and step up in a patriarchal
society. Contemporary issues labeled to women such as productivity issues concerning
pregnancy and leave has become a major setback in providing youngsters with job
opportunities. The need for gender budgeting which enforces gender empowerment,
enforcing policies to recruit female workers can be achieved. The policy structure that comes
with gender budgeting can benefit the economic development in enhancing the productivity
of female labor in the society.
II.

Low values on gender empowerment measures

Gender inequalities in key areas such as economic, political and decision making is measured
through gender empowerment measurements. Sri Lanka is ranked the 85 th taking a value of
0.369 in the GEM measurement. This clearly defies that Sri Lankan literate women are not
actively engaged in policy and decision making Sri Lanka. For example, seats in the
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parliament held by women are 4.9% which is relatively a low value in a country which has a
high literacy rate. The inequalities and unaddressed issues such as discrimination in decision
making occupations have to be carefully analyzed in promoting the active engagement in
developing the country. The proper need for a carefully analyzed gender budget should be
considered in establishing the gender equality between men and women. The development
stages of Sri Lanka should attributed with highly abled and knowledgeable women in
reforming processes.
III.

Poverty affected mostly to women

Unskilled labour of women has contributed majorly in the development of Sri Lankan
economy. Tea plantation, involvement in textile industry and migration to Middle East
brought a positive impact on the foreign exchange. However, it has been understood that
these laborers are underpaid which enhance the gender disparity furthermore. It has been
recorded that unskilled labour in 1981 recorded 76% of women where the percentage of
skilled labour was merely 2.5%. Due to poverty affecting majorly on women with children,
they are forced work for low wages. The need and the importance for policies and reforms in
gender budgeting is much needed in creating equalities and enhancing the rural development
within the country.

Conclusion
Gender budgeting, an instrument which enforces the equalities between the gender roles in a
society is one of the comprehend ways to develop a society. Its importance is not only limited
in harmonizing the gender roles within a society, but it enhances the social structure,
efficiency in resource allocation as well as in the development process the world is
undergoing in the modern world.

References

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Stotsky, Janet J. "Gender Budgeting". IMF (2006): 24-32. Print.

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"Data, Monitoring And Evaluation". UNICEF. N.p., 2016. Web. 8 Apr. 2016.

"Gender And Governance - GSDRC". GSDRC. N.p., 2015. Web. 8 Apr. 2016.

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