For centuries, the contribution of women (care economy) has been ignored in national accounts. It is specifically predominant in India and especially in Odisha due to the orthodox socio-cultural customs and traditions. The patriarchal society deeply ingrains the conviction that women will take care of the family without remuneration. This belief largely widens gender inequality. However, recently, the state government has tried to reduce gender inequality through macroeconomic policies, especially annual budgets.
Odisha’s engagement with gender budgeting predates many states. The Gender Budget Statement, introduced in 2012 13, became a routine part of the state’s fiscal architecture. In the recent past, Odisha has emerged as one of the most consistent practitioners of gender budgeting. The State’s gender budget has expanded steadily in scale, institutional coverage and political visibility. In the budget 2025 26, the government allocated Rs 89,861.77 crore under the gender budget (an increase of 18.85% from Rs 75,611.58 crore in 2024 25). Yet, behind the impressive numbers lies a more complex question: has gender budgeting moved from fiscal commitment to real capability-building for women?
COVID-19 pandemic exposed the disproportionate burden borne by women – loss of livelihoods, increased unpaid care work, health risks and rising vulnerability. This forced gender budgeting to shift from a technical exercise to a policy necessity. In 2020-21, women-specific schemes accounted for less than 2% of total state expenditure, while women-related components in composite schemes formed roughly one-third of the budget.
The post-pandemic years saw a clear fiscal expansion. By 2022-23, the total gender budget crossed Rs 56,000 crore, accounting for nearly 45% of total state expenditure and over 10% of GSDP. These ratios place Odis ha among tthe op States nationally in terms of gender-responsive fiscal effort. Two shifts stand out during this period. First, women-specific allocations grew sharply, particularly after the strengthening of Mission Shakti as a dedicated department. Allo cations for women’s livelihoods, SHGs, nutrition and safety more than doubled between 2020-21 and 2022-23, signalling a strong political commitment to wom en’s economic empowerment. Second, the bulk of gender-responsive spending continued to flow through gender-sensitive schemes – those where at least 30% of allocations benefi t wom en. For instance, the Subhadra Yojana, a major women-centric initiative (2024-2029), has a total estimated budget allocation of Rs 55,825 crore to provide financial assistance of Rs 50,000 to eligible women over five years. The 2024 25 Budget Estimate (BE) specifically allocated Rs 10,000 crore for this scheme.
The sharp rise in female labour force participation (LFPR) in Odisha since 2020 coincides with a significant expansion in the state’s Gender Budget allocations. Between 2020-21 and 2022 23, women-specific expenditures nearly doubled. During the same period, rural female LFPR rose from 34.7% to 52.6% by 2023-24, while overall female participation increased from 32.9% to 49.4%. This parallel movement suggests that expanded gender-responsive fiscal interventions may have contributed to easing wom en’s entry and re-entry into the workforce.
However, this structure also reveals a limitation. Gender budgeting in Odisha remains heavily concentrated within a few social sector departments. Women and Child Development, Mission Shakti and Health and Family Welfare dominate wom en-specifi c spending year after year. While this ensures administrative focus, it risks reinforcing the idea that gender is the responsibility of a handful of departments rather than a cross-cutting concern. Infrastructure, transport, energy and urban development sectors that deeply influence women’s mobility, safety and employment remain peripheral to the gender budgeting narrative.
Another concern is that Odisha’s gender budget remains largely input-driven. Budget documents meticulously track allocations and departmental shares but offer limited evidence on outcomes. The next phase of gender budgeting in Odisha must therefore focus on depth rather than scale. First, allocations need to be explicitly linked to outcomes – employment, health, education and safety; rather than only scheme-wise expenditure. Second, departments outside the traditional social sector must be systematically integrated into the gender budgeting framework. Third, greater transparency and public engagement are needed so that gender budgeting becomes a tool of democratic accountability, not just fiscal reporting.
Odisha’s experience shows that gender budgeting is no longer about whether the state spends on women. The real challenge now is how effectively that spending reshapes women’s economic op portunities and everyday lives.
Sourav Mohanty is Assistant Professor of Economics at Gokhale Institute of Politics and Economics, Pune. Dillip Kumar Muduli is Lecturer in Economics at SVM Autonomous College, Jagatsinghpur.
