Here's a brief overview of what women stand to gain from the Union Budget for FY 23-24.
Introduction of the Mahila Samman Savings Certificate
To commemorate the diamond jubilee of independence, the Budget proposed a new small savings scheme for women.
The Mahila Samman Savings Certificate will allow a deposit of up to ₹2 Lakhs at the rate of 7.5% per annum. The scheme can be availed in the name of a girl or woman for two years. The scheme can be availed from April 1, 2023.
The scheme will serve as an important investment tool for women that will provide tax benefits under Section 80C of the Income Tax Act.
Economic Push for Women Self-help Groups
Finance Minister Nirmala Sitharaman also underlined the success of the Deendayal Antyodaya Yojana National Rural Livelihood Mission (DDY-NRLI) in empowering rural women. This was done through Self-Help Groups (SHGs), which work to uplift women in underserved communities.
The minister announced that the Centre would nudge 81 SHGs in the country to achieve the next phase of economic empowerment.
These groups will be transformed into large producer collectives or enterprises of thousands of members. Moreover, professional help will be provided with supply chain and operations such as:
Leveraging supporting policies will enable women in such groups to scale up into large markets. This will also help women become self-reliant and uplift their standard of living.
Empowering Women Artisans through PM-VIKAS
The Budget conceptualised a new scheme named Pradhan Mantri Vishwakarma Kaushal Samman (PM-VIKAS) for traditional artisans and craftspeople. The FM stressed that the scheme would help them integrate into the MSME value chain.
The result will be the improvement in both the quality and reach of their products. Women are set to benefit the most from the scheme as they constitute 56.13% of the total artisans engaged in the handicraft industry.
The components of the PM-VIKAS scheme are:
Rise in Budgetary Allocations to the Women and Child Development Ministry
The budgetary allocation for the Women and Child Development Ministry witnessed a marginal spike for the financial year 2023-24.
The budgetary estimate for the ministry has been pegged at almost ₹25,448 Crores, an uptick from ₹25,172 Crores allocated last year. However, the allocation for nutritional programmes aimed at adolescent girls such as, POSHAN 2.0 and Saksham Anganwadi, remains the same.
While all this spells good news, there is one aspect of the Budget 2023 that may not bode well for women.
Adverse Effect on Women Labourers Due to Budget Cut in MGNREGS
The allocation for the Centre's flagship rural employment scheme, MGNREGS, has been slashed by 33% to ₹60,000 Crores. The budgetary allocation for the scheme in 2022-23 was ₹73,000 Crores.
The participation of rural women in the scheme was 54.54% in the financial year 2021-22. So, the budget cut may have an adverse effect on women's labour participation in rural areas.
To sum up, the two segments of society that stand to benefit the most from Budget announcements are senior citizens and women. However, these measures will have a multiplier effect on India’s overall economic activity.
The focus of the Union Budget 2023 on social sector spending will not only nudge domestic consumption but also improve people's livelihoods. The increased tax limits and spending on pensions are sure to spur subdued demand and economic recovery.
In addition, schemes like PM-VIKAS and the economic empowerment of self-help groups are expected to increase productivity and create job opportunities.