Gender Budgets and Employment Guarantee Schemes

Aasha Kapur MehtaProfessor of Economics

Indian Institute of Public Administration aashakapurmehta@yahoo.com

First Regional Workshop on Gender BudgetingDepartment of Women and Child

DevelopmentUnited Nations Development

Programme Indian Institute of Public

Administration New Delhi

The Union Budget is:

– Not just an annual statement of receipts and expenditures.

– It is an instrument for fulfilling the obligations of the state

– And is a political statement of the priorities set by government in resource allocation.

(Source: Mehta, NCW 2003) 

Why do we need an Employment Gurarantee?

Why the EGS?

Or the National Rural Employment Guarantee Act?

• Despite Budgets, Plans and Poverty alleviation strategies, unacceptably high levels of poverty and hunger persist however measured and however defined.

• When a household as a whole gets less to eat women and girl children are the most deprived.

(Source: Mehta NCW 2003)

There is a vast chasm between:• vision statements or stated objectives or

targets,• budgetary allocations made to attain these

targets and• the prevailing the grassroots reality

 (Source: Mehta, NCW 2003) 

Resolving this needs:

• National commitment to giving first priority to or first charge on our exchequer to the disadvantaged in any budget, however constrained.  • Correcting historical disparities must get priority over and above any and every other goal.

(Source: Mehta, NCW 2003) 

 Year % population below

the poverty line Number of poor (millions)

1973-74 54.9 321.3

1977-78 51.3 328.9

1983 44.5 322.9

1987-88 38.9 307.1

1993-94 36 320.3

1999-2000 26.1 260.2

Percent of Population and No of People Below the Poverty Line 1973-74 to 1999-2000 (Source: Planning Commission)

Panel Data Analysis shows: there is both •substantial persistence and•substantial mobility•into and out of poverty Over a time period of 11 years, more than half (52.61%) of the households remained in poverty but 47.39% of poor households escaped from poverty. However, 25.74% of non poor households entered poverty. (Source: Bhide and Mehta 2003 and 2004)

Budget priorities at the Micro Household

Level given a Budget Constraint (Source:

Mehta, NCW 2003)

• In household budget allocation, women give the highest priority to nutritious food for the family.

• The objective is good health.

• You need purchasing power to buy food.

• Purchasing power depends on current income or borrowing or wealth.

For most of us , purchasing power depends on the income we earn, which in turn depends

on:

• Availability of work or employment opportunities for the able bodied and

• Fair remuneration or wages/salaries received for work. (Source: Mehta, NCW 2003) 

Budget priorities at the Macro National Level viewed through a Gender and Poverty Sensitive Lens must include:

• Poverty Reduction • Opportunities for Employment for all able bodied• Eradication of Hunger• Access to Safe Drinking Water • Access to Quality and affordable Health Care• Correcting the bias in the Female-Male Ratio • Safety nets for the Old who are Poor and for the

Poor who are Disabled• Correcting Statistical Invisibility of Women’s

Work (Source: Mehta, NCW 2003) 

Case Study: Maharashtra EGS(Source: Krishnaraj, Pandey and Kanchi., 2003)

Key Features

•largest State sponsored public works programme focused on the alleviation of poverty

•implemented by the existing administrative system in existence in the State, at very little additional cost.

•The slogan is work on demand

•It guarantees gainful employment to all adults above 18 years of age, in rural areas and ‘C’ class Municipal Councils

•Based on willingness to undertake unskilled manual work on a piece rate basis.

•Self targeting

Objectives

– In the short run - to provide household income based on employment

– In the long run – to contribute to development of rural infrastructure and create sustained employment opportunities in the long run.

–Provision of unemployment allowance

– Provision of facilities like shelter, first aid

– No discrimination on basis of gender or caste(Source: based on Krishnaraj, Pandey and Kanchi., 2003)

Benefits of EGS

–Employment opportunities

–Income earning opportunities

–Food Security for the Poor

–Income stabilisation

–parity of wages offered to men and women(Source: bsaed on Krishnaraj, Pandey and Kanchi., 2003)

Is MEGS women friendly ?•EGS was not designed specifically to address women’s needs but women have been the major beneficiaries of this scheme as it guarantees work for all those who demand it. •It offered work close to residence•Allotment of work in groups allowed women to work with family members•Provision of creches allowed nursing mothers and mothers of small children to participate•special provision of maternity benefit and birth control treatment•Provided for representation of women in District and Panchayat committee to include their views in planning and implementation of schemes(Source: based on Krishnaraj, Pandey and Kanchi., 2003)

Issues•Calculation of wages was subjective

•The muster of a particular site is almost impossible to trace after the period of 15 days required for the payment of wages.

•work is done by a group of both men and women, so calculation of the individual share of wages, especially of women is somewhat subjective and depends on the team leader who is usually male, as well as the other co-workers.

•Expected benefits in form of equalisation of wages and increased access to income did not materialise(Source: based on Krishnaraj, Pandey and Kanchi., 2003)

•Maternity benefits did not reach women as eligibility for this benefit requires proving 75 days work. Shifting work sites and inadequate records so a woman has no way of showing the stipulated days of work. •If she had an ID card and work registration of which she could have a copy, she would have proof of days worked. •Shelters and crèches not provided as work sites are temporary. •No toilets can be detected on/near EGS sites and there is total lack of privacy.•issue of underutilisation of EGS funds. Failure of EGS expenditure to keep pace with the receipts. (Source: based on Krishnaraj, Pandey and Kanchi., 2003)

NREGA(Source: Consultations at MORD)

•Passed September 2005•Guarantees 100 days of wage employment in a Financial year to adult members of a rural household who

•Demand employment•Are willing to do manual work

•Work to be provided within 15 days of demanding it•Applicable to areas notified by Central Govt •Will cover entire country in 5 years•The choice of works suggested addresses causes of Chronic poverty like drought, deforestation, soil erosion.If effectively implemented, the employment generated Could change the geography of poverty.

Implementation requires formulation ofNational Rural Employment Guarantee SchemesBy State GovernmentsEvery State Government has to by notification,Make a scheme within 6 months of date ofCommencement of the ActThe scheme must provide not less than 100 days ofGuaranteed employment in a financial yearto every household whose adult members volunteerto do unskilled manual work in a notified area (Source: Consultations at MORD)

Implementation

Collaborative partnership between CentreState governmentsPanchayatsLocal communityEach Gram Panchayat to prepare a development planBased on recommendations of Gram SabhaAnd maintain a Shelf of works to be taken up whenDemand arises.For demand to arise people must know their Rights under the Act, so Communication and Publicity are necessaryand an effective multimedia campaign is needed.(Source: Consultations at MORD)

MEGS Guarantees employment to the individual and not to household

NREGA guarantees employment at the level of the household

The Guarantee is limited to 100 of unskilled manual work

One third of beneficiaries must be women(Source: Consultations at MORD)

List of Works

1. Water conservation 2. renovation of traditional water bodies including

desilting of tanks3. Irrigation, including micro and minor works4. land development5. flood control and protection/drainage works in

water logged areas6. rural connectivity to provide all weather access7. Any other which may be notified(Source: Consultations at MORD)

Recommendations regarding

Priority Allocations (based onMehta NCW 2003):

• Budget allocation has to give first priority to access to food for those in severe poverty – based on work on demand for the able bodied and provisions by the state for the old, disabled and chronically ill. This must have FIRST CHARGE on budget resources.

• Access to safe drinking water and safe sewage disposal in each home have to be mandatory.

• Availability of water for daily needs must be given the highest priority to reduce drudgery suffered by women.

• Where common taps exist they must be in Dalit and Tribal hamlets to ensure their access.

• The budget should take care of full employment, make the right to development and livelihood effective rights.

• Work on demand must be available by right. This could be patterned on the Maharashtra EGS but correcting for the inadequacies in it.

• Community assets created under EGS must meet women’s needs.

• Work must be available throughout the year.• Wages must be paid directly to each person. • Allocations are needed for monitoring systems to

ensure equal wages for equal work and timely dispersal of wages.

• Empower women’s organizations and citizens groups to monitor the enforcement of equal and minimum wages legislation by state government and the adherence to norms in poverty alleviation programmes.

(based onMehta NCW 2003)

• The state must increase its spending on rural roads and agricultural research and extension.

• The budget must provide for health care for the poor as health related shocks and costs lead to debt and force entry into poverty. Allocations cannot simply be for salaries and administration.

• Self Help Groups (SHGs) of women be associated to ensure effective implementation of existing schemes.

• Domestic violence must be treated as a crime and adequate allocations made for shelters for women .

• Enhanced support to women engaged in economic activities in urban and semi-urban centres through the provision of working women’s hostels.

(based onMehta NCW 2003)

• Expand micro-credit availability to women. • Allocations for provision of Public Indian-style

toilets at regular intervals in urban and rural areas.

• Attention should be given to improve women’s access to quality reproductive health services.

• Special budgetary provisions for women patients (separate from family planning budget) in the primary health centers and public hospitals.

• Safe transport for working women and school and college-going girls to facilitate women’s participation in educational and economic.

(based onMehta NCW 2003)

Recommendations wrt Process:• Mechanism for Output Monitoring through

Benefit Incidence Analysis. • More resources and decision-making powers

should be given to local bodies.• Women in village panchayats and elected

women representatives must be involved in making the budgets.

• While granting licenses to new establishments, an inquiry should be made about basic amenities for women workers.

(based onMehta NCW 2003)

• While the National Rural Employment Guarantee Act 2005 is a major step in this direction, work on demand is not yet universally available by right. Nor have we eradicated hunger or provided safety nets for the old, disabled and chronically ill.

Thank you