When thinking about gender equality, Ministries of Finance (MOFs) are not the first institutions that come to mind. Gender-related issues are often viewed as social policy concerns, primarily addressed by ministries of labor, education, or women’s affairs. However, gender equality is just as much a matter of public finance as it is of social policy.
Finance ministries control the public purse, making crucial decisions about how public resources are raised, allocated, and spent. These decisions directly influence economic and social outcomes, giving finance ministries the power to either advance or hinder gender equality progress.
The Issue: A Gender-Blind Fiscal System
Despite growing awareness of gender inequality, government budgets have largely failed to effectively address gender disparities. According to the OECD, tax policies in many countries disadvantage second earners, who are often women. This creates a disincentive for them to participate in the workforce. In fact, in most OECD countries, the tax burden on second earners is higher than that on single individuals with the same income.
Furthermore, Gender-Responsive Public Financial Management (GRPFM) assessments from the Public Expenditure and Financial Accountability (PEFA) framework show that few countries analyze budget proposals for their gender impact. Out of the 32 publicly available GRPFM assessments, only four (12.5%) received a score of C or higher, meaning that gender considerations are rarely incorporated into proposed revenue or expenditure policies.
Public spending often prioritizes male-dominated sectors like infrastructure, while underfunding essential services such as childcare and education. This approach, as highlighted in research by Reljic and Zezza (2025), reflects a gender-neutral budget that maintains the status quo rather than addressing gender disparities. As Janet Stotsky from the IMF notes, “there is no such thing as a gender-neutral government budget.”
The result is that women remain economically marginalized, while economies underperform by failing to utilize the full potential of their workforce.
Gender-Responsive Budgeting: Beyond a Buzzword
When Ministries of Finance implement Gender-Responsive Budgeting (GRB) effectively, the results can be transformative. GRB is not about creating a separate “women’s budget”; it’s about applying gender analysis in a strategic and purposeful manner. So, what does this look like in practice?
Purpose = f (Objective, Problem, Function)
Objective: What does the MOF seek to achieve with GRB at a particular time? Is the goal inclusive economic growth? Efficient and equitable resource allocation?
Problem: What constraints or bottlenecks make GRB necessary? Are there gaps in labor force participation, underinvestment in gender-responsive programs like childcare, or gender-blind budgeting that perpetuates systemic inequalities?
Function: How can GRB be operationalized to address these constraints? For example, fiscal decisions informed by gender incidence analyses, eliminating gender biases in tax codes, or creating procurement policies that promote gender inclusivity in the private sector.
GRB works best when its functions—such as analyzing impacts, allocating resources, adjusting fiscal policies, and ensuring accountability—are used strategically within a broader framework. Addressing specific issues in fiscal policymaking and applying targeted solutions can help MOFs make significant progress toward their objectives.
Implementing GRB: An Illustration in Action
The knowledge and tools needed to implement GRB are already available. What’s required now is for Ministries of Finance to take decisive action and implement these proven strategies.
Key Takeaway: Finance Ministries Must Lead the Charge
Finance ministries have the tools and influence to accelerate gender equality through budgeting, taxation, and fiscal policies. By taking purposeful actions to implement GRB, they can help create more inclusive economies. As we celebrate International Women’s Day, it is an ideal time to call on finance ministries worldwide to adopt gender-responsive budgeting as a standard practice. It’s time to make gender equality a central focus of fiscal policy.
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