Gender Responsive Budgeting: Initiation and present status in Nepal

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1 Gender Responsive Budgeting: Initiation and present status in Nepal Yoga Nath Poudel Ministry of Finance Nepal November 11,2014

2 Under investment in women and girls is costly in terms of human development outcomes and growth.

3 Presentation outline Context o o o Global context Macroeconomic situation in Nepal Gender equality and women s empowerment progress to date Interventions Results Opportunities Way forward

4 Global context The concept of Gender Responsive Budgeting (GRB) came to the attention of policy makers very recently. GRB was implemented in Australia for the first time in 1984 as a Gender Mainstreaming Strategy. The UN 4th World Conference on Women and the Beijing Platform for Action in 1995 also endorsed this concept. Beijing+20 review: ensuring adequate financing for gender equality as a cross cutting issue in all the critical areas of concern.

5 Current macroeconomic situation Indicators Status in 2012/13 Gross national income per capita (US $) Economic growth rate 3.6 Agricultural sector growth rate 1.3 Non agricultural sector growth rate 5.0 Inflation rate 9.9 Annual average growth rate in employment 2.9 Revenue growth rate 23.0 Total expenditure (as percentage of GDP) 26.3 Poverty rate 23.8 Source: NPC (2014)

6 Some Issues on Capital Expenditure Lower allocation Average allocation in total budget of 3 years is 17.2 percent Few reasons Recurrent expenditure getting height Social security costs including Pensions increasing remarkably Remuneration alone covers nearly one fifth of total budget

7 Progress on gender equality and women s empowerment Commitment to normative frameworks and international standards, (CEDAW, BPfA, MDGs, UNSCR 1325) Adoption of several progressive laws, policies and plans Women secured 30% representation in the November 2013 elections to the CA On track to achieve most of the MDGs (6 out of 8) Committed to post 2015 development agenda and stand alone goal on gender equality Women s development priorities should focus on 3 Ls: Learning, Labour and Leadership

8 Interventions Gender Equality and Women s Empowerment a key development objective of the Tenth Plan ( ) Ongoing partnership with UN Women Gender coding in programmmes and projects through MTEF Gender Responsive Budgeting (since 2007/08) GRB methodology designed and being implemented GRB system in MOF s leadership Budget chief as GRBC coordinator Inclusion of GRB allocation in the budget speech

9 GRB classification criteria 9 No. Criteria Score 1 Women s participation in formulation and implementation of 20 the programmes 2 Women s capacity development 20 3 Women s share in the benefit 30 4 Promoting employment and income generation for women 20 5 Qualitative improvement of women's time use or reduced 10 workload Total 100 Directly Gender Responsive (1) Indirectly Gender Responsive (2) Neutral (3) =>50% >20% to <50% <20 %

10 Progress Targeted policies and programmes for gender equality and women s empowerment Budgeting and programming based on gender responsiveness Attention to development of human capital with special provisions for women s education, health and gender responsive infrastructure Policies for women s empowerment Tax rebates, property ownership, women entrepreneurship development, strategies to reduce violence against women

11 Other initiatives Scholarship and incentive programmes in schools Representation of women in school management Women as primary health care workers Gender responsive census (2011) 50 questions engendered (5.6 million households covered) Women s representation in peace committees (one third membership is mandated)

12 GRB allocations 2007/8-2014/15 12 Fiscal Year Directly Res NPR Bil (%) Indirectly Res NPR Bil (%) Neutral NPR Bil (%) Total NPR Billion 2007/ (11.30) (33.16) (55.54) / (13.94) (35.41) (50.64) / (17.30) (36.43) (46.27) / (17.94) (36.30) (45.76) / (19.05) (45.78) (35.17) / (21.51) (44.13) (34.36) / (21.75) (43.94) (34.31) / (21.93) (45.04) (33.03) 618

13 GRB allocation trends- 2007/8-2014/ DGR IGR Neutral Total / / / / / / / /15

14 GRB allocations by development partners 2013-AMIS 14 DPs Directly Indirectly Neutral Unmarked Total USD (No. of Res USD Res USD USD Mil USD Mil Million projects) Mil (%) Mil (%) (%) (%) Total (760) 7, (8) 1,752 (23) 1943 (26) 3,255 (43) ADB (82) 1, (6) 389 (23) 528 (31) 664 (39 China (11) (5) 33 (11) 152 (51) 101 (34) Denmark (21) (2) 35 (21) 12 (7) 118 (70) DFID (37) (0.31) 65 (10) 104 (16) 475 (74) GIZ (14) (1) 0 5 (5) 93 (94) EU (71) (4) 23 (10) 36 (17) 150 (69) Finland (11) (35) 0 22 (24) 39 (41)

15 GRB allocations by development partners AMIS 15 DPs Directly Indirectly Neutral Unmarked Total USD (No. of Res USD Res USD USD Mil USD Mil Million projects) Mil (%) Mil (%) (%) (%) India (8) (2) 241 (80) 54 (18) IDA WB (23) 1, (11) 434 (28) 193 (13) 739 (43) JICA (27) (3) 0 65 (35) 116 (62) Norway (36) (7) 39 (18) 60 (28) 101 (47) SDC (39) (4) 91 (46) 39 (20) 59 (30) UNDP (14) (0.21) 6 (11) 3 (7) 41 (82) USAID (27) (35) 197 (56) 33 (9) 0 WB TF (19) (1) 23 (17) 97 (72) 13 (10)

16 GRB results Creation of GBV control fund in 2010 with a budget of 10 Million NPR Targeted allocation 10% for women in all local bodies (DDCs, Municipalities and VDCs) Increase in GRB allocation 21.75% directly gender responsive in 2013 Mainstreamed GEWE in public finance management framework MTB/EF and NPPR GRB system is functional in MOF with enhanced institutional capacity

17 Opportunities Gender responsive new constitution Emphasis on gender responsive programme priorities, women s empowerment and budget adequacy Transparency in planning and budgeting Aid effectiveness agenda financing for gender equality Gender marking in web based aid management platform (AMP) Localization of GRB

18 Way forward Evaluate past GRB work process initiated Cost laws, policies and NAPs on gender equality and women s empowerment process initiated Review and refine GRB classification and scores Reinforce the gender marker in Aid Management Reinstate gender assessment in the investment Institutionalization strengthen ministries and local bodies and mitigate capacity gaps Government decided to establish GRBC in all sectoral ministries and DDCs Capacity development of DPs and CSOs

19 Way forward Government has prioritized gender equality in its Development Cooperation Policy (DCP) National Women Commission to be established a constitutional body Nepal aims to graduate from LDC by 2022 The implementation of social protection measures, including employment and livelihood schemes that target women, and the introduction and enforcement of legislation guaranteeing equal rights, as appropriate, to inheritance for women and men and for girls and boys (ESCAP draft outcome of ministerial meeting, Nov 2014) Need to address disproportionately low economic participation of women

20 Financing for Development It is difficult to conceive of any public policy that can be carried out without financial resources. Hope the Conference will inspire heightened sensitivity and commitment to resource mobilization, vital to address state's gender concerns.

21 The post 2015 development agenda only becomes truly transformative when the pressing needs and priorities of the most vulnerable and marginalized countries and societies are faithfully accommodated into the broader global agenda and are provided with sufficient resources to achieve them. He called for a fair, sustainable, equitable, and inclusive development by respecting the diversity of all nations. (PM Koirala at the UN GA 69th session, September 2014)

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