Accepting that earmarking money for women through WCP is only a second-best principle of gender budgeting, the NIPFP study has attempted an analysis of the whole budgetary process through a gender lens.
The gender diagnosis analysis carried out by NIPFP justified the need for conducting gender budgeting based on the empirical evidence that as women and men are at asymmetric levels of socioeconomic development in India, the existing gender neutrality of budgets can lead to many unintentional negative consequences, translating the gender neutrality of budgets into gender blindness.
Recognizing that the dynamic interaction between dual sets of economic activity mark the microfoundations of engendering macroeconomic policies, the NIPFP study applies global substitution criteria of price variables to the time use budgets to value the care economy across selected states in India (within the framework of extended production boundary of Systems of National Accounts [SNA] 1993, [box 2]) and, in turn, integrates this into macro policies.
The methodology adopted by NIPFP for gender budgeting received wide attention due to its simplicity and practicability in conducting gender budgeting within the country and between countries.
Within the analytical framework of gender budgeting, a few matrices have been developed by NIPFP to categorize the financial inputs from gender perspective.