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This paper delves into the evaluation of the repercussions of gender budgeting adoption on fiscal policies of Indian states, with a specific focus on health and education expenditures spanning from 1991 to 2020.
Leveraging a Staggered Difference-in-Differences (DiD) framework as the primary empirical methodology, with Entropy Balancing employed as a robustness test, the findings reveal that Indian states embracing gender budgeting exhibit increased spending on health and education compared to their counterparts.
Notably, the impact is more pronounced and robust for education expenditures, recognized as a pivotal tool for women's empowerment.
The study identifies a potential transmission channel, attributing the augmented spending to increased transfers from central governments, particularly through Centrally Sponsored Schemes (CSS).
Policy implications underscore that the timing of adoption matters, with early adopters experiencing more pronounced effects than later ones and non-adopters.
The analysis underscores the importance of considering the economic context and local particularities during reform implementation to fully assess its effectiveness.
Adopters are advised to contextualize their policy decisions, taking into account the underlying policy context for optimal outcomes.
