By Lekha Chakraborty, Economist, NIPFP, Ministry of Finance, Government of India

1. INTEGRATING SDGs IN
NATIONAL BUDGETS
LEKHA CHAKRABORTY
AN ECONOMIST AT NIPFP ,
THE THINK TANK OF
MINISTRY OF FINANCE, GOVERNMENT OF INDIA
EMAIL: LEKHACHAKRABORTY@GMAIL.COM
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2. The Global Context
 2015 Financing for Development (Addis Ababa):
Transformative financing for attaining SDG 2030
 Fiscal innovations for redressing gender inequality and
climate financing , predominantly ex-post matrices. Ex-ante
process needs a significant articulation.
 SHD paradigm of UN Conference of 1990s (‘People-
mattered’ budget initiatives) with Climate change, gender
equality, democratic governance and poverty eradication
goals – a promising framework
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3. The Focus: *Macroeconomic
Content of SGD 2030*
 Macroeconomic Content of Gender and
Climate Responsive Budgeting
 *Fiscal Rules* constraints SDGs in national
budgets?
 Fiscal Monetary linkages weakens with
*Inflation Targeting* frameworks, to
integrate SDGs?
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4. Macroeconomic Content of SDGs
 Role of State in gender and climate budgeting
 “functional finance” to activate the signaling
 and/or involved in sustainable process to
achieve efficiency and equity.
 Effectiveness of gender and climate budgeting
on human development outcomes
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5. Measurement Issues in SDG
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6. Measurement Issues in SDG: An
example
 The average value of each of the
component variables in HDI is substituted
by “equally distributed equivalent
achievements”.
 Xede = [ nf (1/Xf ) + nm (1/Xm)]-1
 where Xf and Xm are the values of the variable for females and
males, and nf and nm are the population shares of females and
males. Xede is a ‘gender-equity-sensitive indicator’(GESI).
 Thus, GDI is computed as
 GDI = {Lede + (2/3 x Aede + 1/3 x Eede) +
Yede}/3.
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7. Equally Distributed Equivalent
Methodology
 Derivation of these indexes is premised on the notion that, ceteris
paribus, societies have an aversion to gender inequality.
 The difference between the GDI and HDI for a country reflects
not only the magnitude of the gender gap but also the penalty
that applies to this gap.
 This penalty is calculated by constructing the so-called equally
distributed equivalent achievement (EDEA), which is defined as
the level of achievement that, if attained equally by women and
men, would be judged to be exactly as valuable socially as the
actually observed achievement .(Stotsky 2006, 2016)
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8. WITHIN MoF: GENDER AND
CLIMATE RESPONSIVE BUDGETING
 Global best practice leaders of gender budgeting like Australia and
India, within MoF initiatives.
 Comparatively rich fiscal data; in best practices
 cross-country regressions/comparisons of effectiveness of public
expenditure for gender and climate equality rare.
 Within Government initiatives successful – Australia, India, Korea,
Nepal
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9. Phases: Policy Decisions & Financing
Gender and Climate Change
 Phase 1: Modeling GRB and CRB
 Phase 2: Institutional Mechanisms and
Analytical matrix
 Phase 3: Capacity Building
 Phase 4: Accountability Mechanisms
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10. SDG: Policy Diagnosis and Incidence
 Gender and climate diagnosis.
 Analysing Union budgets ex-post through a
“gender and climate change” lens.
 Public Expenditure Benefit Incidence analysis.
 Report/presentation for Standing
Committee/Parliamentarians for informed
debates in Parliament – significant
stakeholders
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11. GDP and System of National
Accounts
SNA Economic Activities
UNSD SNA 1993 decision to
extend the Production Boundary
Non-SNA
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12. ‘Hard to Price’ Categories in SNA
 Lifting the veil of statistical invisibility of ‘Hard
to Price’ categories. This has significant
implications in terms of macro policies for
SHD.
 Allocation and efficiency of non-market time is
more significant for economic growth and
welfare.
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13. Time spent on Care Economy
[hours per week]
States females male
Haryana 31.06 1.99
Madhya Pradesh 35.79 4.43
Gujarat 39.08 3.19
Orissa 35.7 4.47
Tamil Nadu 30.46 3.19
Meghalaya 34.52 7.16
Combined States 34.63 3.65
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14. Satellite Accounts of Non-market
Care Economy
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15. Institutional Mechanisms
 Governance Issues of GRB and CRB
 Fiscal Rules & integrating gender and climate change in
appropriate “budget heads” by amending
“Classification of Budgetary Transactions”.
 FinMin approval of GRB and CRB recommendations.
 Plausibility of a GRB and CRB page in Expenditure
Budgets
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16. Institutional Entry Points
 Gender and Climate Budgeting Secretariat at
MoF
 Interdepartmental Standing Committee on
Gender and Climate Budgeting.
 Formulate Matrices for gender-disaggregated
data
 Periodic benefit incidence analysis
 Monitoring Output than Input.
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17. Ex-post GRB : Analytical
matrix to Classify Public
Expenditure
 ANALYTICAL MATRIX
 Category i. Specifically targeted expenditure
 Category ii. Public Expenditure with pro-SHD
allocation
 Category iii: Mainstream expenditure that
make SHD impacts.
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18. Trends : Financing Gender
Development
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19. GRB and CRB Budget
Specifications
 Focus on Intergovernmental Transfers
 Institutional Mechanism at subnational levels
 Categorization of Budget through a “gender
and climate change” lens (Using Analytical
Matrix)
 Fiscal Marksmanship Analysis:
 Any deviation between Budgeted and Actuals?
 Linking to Performance Budgeting
 Identifying Complementary Fiscal Policies
 Capacity Building at local level.
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20. Fiscal Policy and SDGs: Plausible Econometric
Links?
 Determining environmental quality in a fiscal
federalism.
 Public Expenditure tagging decisions on SDG.
 Econometric Model verifications of the link.
 Intergovernmental Fiscal transfers for SHD?
 Governance and SHD
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21. MoF Nomenclature for SDGs in Asia
Pacific
 Ministry of Finance in the lead role to incorporate gender budgeting
and climate responsive budgeting in Budget Circulars, Expenditure
Budgets, and the Outcome Budget. Sectoral Ministries can arrive at
partial outcomes only.
 Integrate gender budgeting and climate responsive budgeting within
the existing “classification of budget transactions”. India and Korea
have at arrived partial success.
 Making gender budgeting and climate financing mandatory through
fiscal legislations (National Finance Act 2006 in Korea, an example)
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22. Asia_GBS
 Gender Budget Statements in vogue
 Transparency and Accountability initiatives
 GBS – to articulate how much they spend on women;
 GBS helped to mainstream gender budgeting in the
prima facie gender neutral ministries
 CLIMATE RESPONSIVE BUDGET STATEMENTS, YET TO
BE INTEGRATED IN BUDGETS
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23. DATA PAUCITY
 GBS led to building up sex disaggregated data at
sectoral level
 Valuing Care economy_time use statistics
 Monitoring Outcomes _ Outcome Indicators
 GB as “Good Governance”. Indicators
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24. Challenges to integrate SDG in
Budgets
 Making GB legally mandatory
 One-time exercises, and outside govt
 Institutional Structures
 Capacity Building of GBCs
 One-size fits all exercises
 Exploring the fiscal decentralisation frameworks
 Integrating gender in fiscal transfers
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25.  Integrating Climate Change and Gender in Intergovernmental Fiscal
Transfers, for horizontal equalization, still a challenge!
 Uniqueness of India _ Fourteenth Finance Commission integrated
climate change in formula-based unconditional grants.
 Can this model be replicated for Asia Pacific region?
 Criteria for fiscal devolution still evolving , and debate is stuck with
population considered as neutral criteria for *needs* assessment!
 For instance, in Pakistan, the national finance commission (NFC)
awards mostly inconclusive. 7th NFC was conclusive and a stamp was
released! Inconclusive fiscal devolution/awards, a challenge to
integrate SDGs.
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Intergovernmental Fiscal
Transfers for SDGs

26. Stamp _ Pakistan’s 7th National
Finance Commission Award :
conclusive!
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27. Thank You!
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