Promises on Paper or Money Well Spent? Gender Budgeting Delivers

This study delves into the effects of adopting gender budgeting on fiscal policies within Indian states over the period spanning from 1991 to 2020. Employing a Differencein-Differences (DiD) framework alongside alternative estimators, the research tackles concerns regarding endogeneity to ensure the robustness of its findings. The findings reveal that states embracing gender budgeting tend to allocate a larger share of their expenditures to sectors that promote gender inclusivity, notably education and infrastructure. Intriguingly, the adoption of gender budgeting appears to bolster the credibility of states in prioritizing pro-gender policies, facilitated notably by central government transfers, including Centrally Sponsored Schemes (CSS), which serve as vital transmission channels. However, while gender budgeting presents a promising approach to tackling gender disparities and bolstering social outcomes, its implementation may encroach upon fiscal autonomy, necessitating careful deliberation regarding resource allocation and intergovernmental relationships. The study's policy implications stress the significance of contextual factors and transparency in ensuring the effective and credible implementation of gender budgeting reforms, particularly within the diverse economic landscape of India. In summary, this research offers valuable insights into the nuanced impact of gender budgeting adoption on fiscal dynamics, highlighting the imperative for further exploration to navigate complexities and optimize policy outcomes.