Advancing Gender Equality through Gender-Responsive Public Financial Management

Gender inequality is a global concern, regardless of a country's development status.

Despite numerous years of global commitments and efforts to combat gender inequality, significant disparity persists. In 2023, the Global Gender Gap Index (GGI) stands at 68.4%, signifying a 68.4% gender gap closure for 146 countries. Asia, with 59.1% of the global population, is at the center of the gender inequality challenge. The Global Gender Gap Report 2023 estimates that, at the current rate of progress, it will take 131 years to achieve full gender parity. While no country has achieved complete gender parity, nine countries, seven of which are from high-income economies, have closed at least 80% gender gap. 

Europe emerges as the highest-performing region in closing the gender gap, while Southern Asia, including Afghanistan, Bangladesh, Bhutan, India, Iran, Sri Lanka, Maldives, Nepal, and Pakistan, accounting for 25.2% of the world’s population, ranks second to the lowest region, exhibiting a significant gender disparity.

Furthermore, among the 105 countries surveyed by the UN Women, only 26% have comprehensive systems in place to track and make public fund allocations for gender equality. In contrast, 59% have some features of systems in place, and 15% lack the minimum element needed for such systems.

It is critical to institutionalize a gender-responsive public financial management system. 

The SDG-5.c indicator is a global call which aims, by 2030, for countries to “adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels.” The goal extends beyond securing funds for gender programs; it involves integrating processes that promote gender equality. The objective is to encourage governments to develop policies and institutionalize gender-sensitive budget tracking, monitoring systems, and information sharing. 

Specifically, indicator 5.c.1, criterion 2 with seven sub-criteria, was established to monitor the extent to which a country’s PFM system promotes gender-related targets.  In 2023 UN Women reported the progress of SDG 5.c.1-criterion 2. Out of 105 countries 57% have disaggregated data, 54% have established guidelines, 42% adopts ex-ante gender impact assessment (GIA), 39% adopts ex-post GIA, 38% have gender statement, only 26% have gender tagging or classification, and only 23% have gender budget audit.

Australia pioneered gender-responsive budgeting in 1984, followed by the Philippines in 1991. In 1995, various governments and multilateral organizations advocated the use of budgeting tool to address gender equality in the United Nations Fourth World Conference on Women held in Beijing. Since then, over 100 countries, including 27 countries from Asia, have undertaken gender-responsive budgeting (GRB). Yet, it is important to underscore that while many countries have initiated gender-responsive budgeting efforts, their implementation, dedication, and progress vary.

Achieving gender equality targets is hampered by governments’ limited commitment to track and make public fund allocations for gender priorities, stemming from the absence of a comprehensive, gender-sensitive PFM system. Gender-responsive PFM (GRPFM), also known as GRB, serves as a fiscal tool and a key enabler for achieving gender equality outcomes and promoting economic growth. Integrating SDG-5.c promotes a gender perspective in the PFM system. Strengthening and integrating gender analysis in PFM advances the policymakers capacity to create gender-sensitive policies, make public allocation, monitor spending, and report development actions. This marks a significant starting point and presents an opportunity for development partners to offer support. 

An effectively institutionalized GRPFM can help advance gender equality.

Effectively implemented GRPFM identifies gender gaps in policies, programs, and resource allocations, enabling governments to develop better policies and allocate resources to advance the agenda of reducing inequalities. GRPFM integrates a gender lens into program development, fund allocation, implementation, and impact evaluation.

Boost budget inclusiveness. UN Women’s analysis of 105 countries reveals that while 92% have gender equality policies and/or programs, only 53% allocate sufficient budget. Adequate funding is crucial for translating government initiatives into action. A comprehensive gender-responsive program becomes unimplementable and/or unsustainable without proper resource allocation. Governments are encouraged to infuse gender perspectives throughout PFM processes.

Pursue the development of evidence-based policies. Effective policies and programs require comprehensive, reliable gender-disaggregated data for identification, mitigation design, and resource allocation to address gender inequalities. Integrating such data into the PFM system is vital. For example, in the Philippines, the 2009 Magna Carta of Women mandates the “generation and maintenance of gender and development database,” which involves the systematic gathering and regular updating of gender statistics and sex-disaggregation. Out of 146 countries, the Philippines leads the Global GGI 2023 ranking at 16th place with a gender parity achievement of 79.1%. Also, the Philippines is the only Asian country in the top 45 of the Global GGI 2023. Comprehensive gender data facilitates the Philippines analysis and enable the creation of sound, gender-sensitive, and evidence-based policies and programs.

Increase awareness of how policies impact women and men differently. Given limited resources, effective planning and evaluation are crucial. GRPFM integrates both ex-ante and ex-post GIA. Understanding potential policy impacts informs preventive measures against negative effects on gender equality. Lessons from implemented policies enable the government to refine or adjust existing policies to reinforce gender equality goals.

Promote accountability. GRPFM enhances the overall accountability of gender policies and funds through budget tagging, a vital element in an integrated GRPFM for public fund control and accountability. Budget tagging ensures clear identification of budget owners and enables precise tracking of spending, enhancing government unit accountability. It streamlines the examination of budget allocation and execution against gender programs. Additionally, this supports adherence to international commitments to track programs addressing gender equality.

Integrating gender perspectives into the broader government PFM system can: (i) accelerate achievement of SDG 5, (ii) reduce the time for attaining full gender parity, and (iii) promote better gender equality outcomes. The governments may consider the following way forward:

• Use the Public Expenditure and Financial Accountability (PEFA) GRPFM framework to identify strengths and weaknesses in public finance system, guiding PFM reforms.
• Strengthen existing accountability and transparency mechanisms, including: 
  • setting clear rules and procedures to promote gender mainstreaming in the budget process, ensuring consideration of gender priorities; 
  • creating gender budget statements as accountability documents for government agencies, which outline gender-related programs and budgets; and 
  • reinforcing gender oversight through independent audits to verify that funds are spent for their intended purpose.

United Nations. 2023. The Sustainable Development Goals Report: Special Edition. New York.

UN. 2023. Progress Towards the Sustainable Development Goals. New York.

UN Women.2023. Strengthening Public Finance Management Systems for Gender Equality and Women’s Empowerment: Promising Practices and Remaining Gaps. New York.

UN Women. 2022. Action Kit - Engaging Parliaments in Gender Responsive Budgeting. New York.

United Nations Economic and Social Commission for Asia and the Pacific. 2018. Gender-Responsive Budgeting in Asia and the Pacific, Key Concepts and Good Practices. Bangkok.

World Economic Forum. 2023. Global Gender Gap Report 2023. Geneva.