Union Budget 2025-26: A Milestone for Gender Budgeting & Women-Led Development

The Union Budget 2025-26 marks a significant milestone as India celebrates two decades of gender budgeting. Finance Minister Nirmala Sitharaman's address emphasized a vision that places women at the heart of the nation's growth trajectory, aligning with the broader goal of Viksit Bharat by 2047, with 'women-led development' as a cornerstone. A notable target set in this budget is the integration of 50% of women into the workforce. This article delves into the budget's allocations and initiatives, assessing their potential impact on women's empowerment and evaluating India's progress toward its gender goals.

Understanding Gender Budgeting in India

Gender budgeting is a fiscal approach that integrates gender perspectives into budgetary processes, ensuring that public funds are allocated in a manner that addresses the specific needs of women and promotes gender equality. India adopted gender budgeting in 2005-06 with the publication of the Gender Budget Statement (GBS), which presents budget allocations and public expenditure aimed at gender equality and women's empowerment. Over the years, this practice has evolved, with various ministries and states adopting gender-responsive budgeting to address disparities and promote inclusive growth.

Challenges in Achieving 50% Female Workforce Integration

Despite targeted interventions, significant barriers hinder workforce participation:

• Workplace Discrimination: Women face biases in hiring, promotions, and pay scales, with an average gender pay gap of 34%.
• Lack of Childcare Support: Limited affordable childcare options force women into career breaks.
• Safety Concerns: Fear of harassment restricts women’s job choices and working hours.

Key Highlights of the Gender Budget 2025-26

The Gender Budget for FY 2025-26 has seen a substantial increase, with total allocations reaching ₹4.49 lakh crore, marking a 37% rise from the previous fiscal year.

This significant boost underscores the government's commitment to advancing gender equality and empowering women across various sectors.

Major Initiatives and Allocations

Support for Women Entrepreneurs

A notable initiative in this year's budget is the provision of term loans up to ₹2 crore for first-time entrepreneurs, including women, over the next five years. This move aims to foster entrepreneurship among women, providing them with the necessary financial support to start and scale their businesses. 

Employment Generation Programs

The Female Labor Force Participation Rate (FLFPR) has shown a slight increase to 41.7% in 2023-24. To further boost women's participation in the workforce, the budget continues to support initiatives like the Pradhan Mantri Employment Generation Programme (PMEGP). However, it's noteworthy that the funding for PMEGP has decreased from ₹1,012.50 crore in 2024-25 to ₹862.50 crore in 2025-26, which may impact the program's effectiveness in promoting women's employment. 

Rural Employment Schemes

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), which has been instrumental in providing employment opportunities to women in rural areas, received an allocation of ₹40,000 crore, an increase from ₹37,654 crore in 2024-25. Notably, women account for 57.8% of person-days worked under this scheme, highlighting its significance in supporting rural women's livelihoods.

Sectoral Allocations Benefiting Women

The budget has also earmarked funds for various sectors that directly or indirectly contribute to women's empowerment:

These allocations reflect a comprehensive approach to addressing the multifaceted challenges faced by women and aim to create an enabling environment for their empowerment.

State-Wise Allocation and Initiatives

• Kerala: Kudumbashree Mission for women’s entrepreneurship.
• Rajasthan: Rajshree Scheme encouraging girl child education.
• Tamil Nadu: Amma Maternity Nutrition Kit for maternal health.

Government Schemes Performance Analysis

Beti Bachao Beti Padhao (BBBP)

• Aimed at preventing gender-biased sex selection and promoting education.
• Success in awareness-building but criticized for underutilization of funds.

MUDRA Loans for Women

• 68% of total MUDRA loans have been disbursed to women entrepreneurs.
• However, most businesses remain small-scale due to a lack of mentorship and market access.

Skill India Mission

• Enrolled a significant number of women, but job placement rates post-training remain low due to market demand mismatches.

Challenges and Areas for Improvement

Despite the increased allocations and initiatives, several challenges persist:

• Declining Funding for Key Programs: The reduction in funding for PMEGP may hinder efforts to promote women's entrepreneurship and employment.
• Implementation Gaps: Effective implementation of schemes remains a concern, with bureaucratic hurdles and lack of awareness among beneficiaries limiting the reach and impact of programs.
• Need for Data-Driven Policies: There is a pressing need for robust gender-disaggregated data to inform policy decisions and ensure that interventions are targeted and effective.

Conclusion

The Union Budget 2025-26 demonstrates a strong commitment to women's empowerment through increased allocations and targeted initiatives. However, to achieve the ambitious goal of integrating 50% of women into the workforce and realizing the vision of women-led development, it is crucial to address existing challenges, ensure effective implementation of schemes, and adopt a data-driven approach to policymaking. Continuous monitoring and evaluation, along with active participation from all stakeholders, will be key to translating budgetary commitments into tangible outcomes for women's empowerment in India.