Union Budget 2026 | Incremental gains without addressing structural barriers

Allocations focus on time-saving ‘hardware’ rather than transformative ‘software’ to shift gender norms

The Gender Budget 2026 has no big surprises. Nari Shakti remains central to government policy. Key announcements include SHE Marts, designed to help SHGs transition into business ownership, supported by innovative and flexible financial instruments.

Women in STEM are being encouraged by establishing hostels in every district to provide safe housing and reduce commuting hours. Women-led groups in the fisheries sector will be strengthened by enhancing the value chain and promoting integrated reservoir development.

The Gender Budget accounts for ~9.37 per cent of the total expenditure of Budget 2026-2027, reflecting a Rs 51,850.05 crore increase over 2025 estimates. Parts A (100 per cent women specific), B (30-99 per cent), C (less than 30 per cent) account 21.49 per cent, 72.56 per cent, and 5.95 per cent, respectively.

As in previous years, the largest allocation under Part A goes to PMAY-Gramin, DAY-NRLM, PMAY-Urban, LPG connections, and Mission Shakti. Under Part B, major allocations include Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin), Jal Jeevan Mission (JJM), RCH & Health System Strengthening, Saksham Anganwadi, and POSHAN 2.0.

An evaluation of the allocations under Parts A and B shows similar patterns compared to previous years. The LPG scheme under Part A and the Jal Jeevan Mission under Part B show significant increases.

The Economic Survey 2026 highlights the high proportion of rural women engaged in self-employment or household enterprises, and the ‘dual burden’ of caregiving and unpaid work.

This underscores the need to improve job quality by addressing women’s time poverty, raising questions of whether increasing allocations alone are sufficient without assessing outcomes against lived gendered realities.

A functioning home is essential to reducing time poverty and enabling women’s transition to quality employment. While the PMAY provides shelter and ownership, a truly functional house requires safe drinking water, electricity, LPG connection, a waste management system, and functional toilets.

Schemes in Part A and B partially support these, but the data show poor convergence. For example, a PMAY house without a Jal Jeevan pipe connection or LPG refilling capacity shifts the costs onto women. The increased Rs 12,500 crore allocation for the Jal Jeevan Mission reflects a stronger focus on coverage, but the scheme must resolve the ‘dry tap’ issues in summer to ensure an uninterrupted water supply.

Additionally, the LPG scheme, which had no allocation in 2025, now has Rs 9,200 crore, indicating a push for sustainability.

The Time Use Survey shows caregiving responsibilities remain a significant barrier to women’s upward economic mobility. Saksham Anganwadi, POSHAN 2.0, and the Palna Scheme under Mission Shakti are key drivers of the care economy. The VB-G RAM G Scheme also focuses on asset quality, with women as primary beneficiaries.

This year’s Budget aims to build a strong care ecosystem covering geriatric and allied services, and training 1.5 lakh caregivers; though it lacks a gendered component.

Currently, anganwadis function mainly as feeding centres, rather than full-day crèches. Of 14,599 Palna centres approved by 2025, only 2,820 to 3,100 are fully functional. Low remuneration for crèche workers remains a critical barrier. Consequently, schemes emphasise ‘time-saving’ for women in traditional roles rather than transforming gendered roles to enable formal workforce participation.

Most allocations under Part A and Part B focus on rural areas. With rapid urbanisation and low urban female labour force participation, a greater focus is needed on affordable childcare in urban areas.

The Mission Sambal, which forms a major component of women's safety initiatives like One Stop Centres, has seen an increase of only Rs 50 crore. Given the link between women's safety and labour force participation, more funding for OSCs—both remuneration and capacity building — is essential.

Finally, Gender Budget statements must move beyond quantifying beneficiary schemes to integrating outcome and impact assessments. The policy orientation must shift from investing only in time-saving ‘hardware’ to gender transformative ‘software’ that challenges social norms using a ‘Time-Use Impact Assessment’.

Anu Maria Francis is Senior Associate (Research and Project Management), Centre for Public Policy Research, Kochi, Kerala.

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.