Roadmap for Answer Writing 1. Introduction Objective: Introduce the concept of public expenditure management (PEM) and its relevance in the context of budget-making. Definition: Explain PEM as the prudent use of government financial resources to achieve good governance, fiscal discipline, and macroeconomic stability. 2. ...
Gender Budgeting in India: A tool for womans empowerment Gender budgeting is an analytical instrument that guarantees the autonomy of gendered money resources in public sector financing. There is prioritizing of the budgets provided by governments based on the gender differences that come with partiRead more
Gender Budgeting in India: A tool for womans empowerment
Gender budgeting is an analytical instrument that guarantees the autonomy of gendered money resources in public sector financing. There is prioritizing of the budgets provided by governments based on the gender differences that come with particular budgets, and then the resources are provided to negate the affected gender differences.
Requirements for Effective Gender Budgeting:
1. Gender-Sensitive Budgeting: This consists in identifying of the quantitative sex needs and then distribution of the characteristics accordingly.
2. Data Disaggregation: Aggregating the data by sex, and comprehending gender differences.
3. Capacity Building: Implementing Gender Budgeting principles and Techniques for Head of Civil Service Trainers and other government officials.
4. Institutional Mechanisms: Implementation of a process similar to or known as the establishment of gender budgeting cells or units in each and every governmental department.
5. Public Awareness: Informing the public on the existence of gender budgeting and the reason for implementing this process.
6. Monitoring and Evaluation: Conducted Periodic Reviews of the contextualization and general application of gendering budgeting measures.
Status of Gender Budgeting in India:
India too has gone some way in the direction of gender budgeting. Significant developments are:
-Institutionalization: The gender budgeting cells have been created in ministries and departments.
-Data Collection and Analysis: An attempt is being made to compile and study gender-break down data.
-Policy Integration: Several of the government policies and programs are adopting gender budgeting factors and policies.
-Public Awareness: Awareness can be initiated trough organizational and educational campaigns, where workshops are being carried out for the population.
But a lot still has to be done to ensure that gender budgeting is optimally realised in India. These are:
-Adequate Data: Absence of data about concrete requirements and consequencies of gender.
-Capacity Constraints: Lack of capacity within government departments render the gender budgetary instruments ineffectual.
-Political Will: The female budgeting exercise is most effective when there is long-term political support.
Model Answer Introduction Public expenditure management (PEM) refers to the efficient use of government financial resources to achieve good governance, encompassing fiscal discipline, resource allocation, operational efficiency, and macroeconomic stability. Since the liberalization, privatization, aRead more
Model Answer
Introduction
Public expenditure management (PEM) refers to the efficient use of government financial resources to achieve good governance, encompassing fiscal discipline, resource allocation, operational efficiency, and macroeconomic stability. Since the liberalization, privatization, and globalization (LPG) reforms of 1991, PEM has presented several challenges for the Government of India, particularly in the context of budget-making.
Challenges in Public Expenditure Management
1. Exposure to Global Economic Shocks
The integration of the Indian economy into the global market has made it vulnerable to external economic shocks, such as the 2008 global financial crisis, fluctuations in crude oil prices, and trade wars. These shocks significantly impact domestic budget estimates and economic stability.
2. Fiscal Policy Constraints
The government faces pressure to increase spending on infrastructure and welfare schemes while adhering to the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, which mandates keeping the fiscal deficit within 3% of GDP. Balancing these demands is a considerable challenge.
3. Banking Sector Challenges
Post-liberalization, the government has had to recapitalize public sector banks, which struggle to operate profitably while ensuring financial inclusion. This creates a burden on public finances.
4. Privatization and Disinvestment Pressures
With the private sector’s capabilities expanding, there is growing demand for the privatization of inefficient public sector enterprises (PSEs). The government must navigate this transition while maintaining public service delivery.
5. Narrow Tax Base
Despite rising incomes, the income tax base has not expanded proportionately, limiting the government’s ability to increase social spending. The growing subsidy burden exacerbates this issue, diverting funds from capital investments.
6. Inadequate Institutional Capacity
Many government schemes suffer from poor implementation, leading to underutilization of allocated budgets. This inefficiency results in cost overruns and ineffective resource allocation.
Conclusion
The post-liberalization period has seen increased per capita income and government expenditure; however, the tax-to-GDP ratio has not improved correspondingly. This disparity has rendered public expenditure management a significant challenge for the Indian government. The Bimal Jalan Committee has recommended rationalizing subsidies and sticking to a disciplined fiscal path to unlock the growth potential of the Indian economy. Effective PEM is crucial for sustainable economic development and governance.
See less