## _wp16153

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---

### Introduction and purpose
- A government’s budget embodies fiscal policies; gender budgeting integrates concern for gender equality and women’s advancement into the budget to: set goals, analyze revenue and expenditure contributions to inequalities, and change policies to address inequalities.
- Four broad categories of gender budgeting initiatives in Latin America:
  - design of a classification system;
  - design, monitoring, and assessment of policies, programs, actions, and resources to address inequalities between women and men;
  - changing laws to establish legislative basis for gender-related policies, programs, and budgets;
  - encouraging better citizenship.
- Most initiatives focused on the expenditure side aiming to increase public resources for programs addressing gender equality, and to improve efficiency, transparency, and accountability of spending.
- Case selection criteria for in-depth review: participation of the Finance Ministry, lasting/institutionalized across administrations, and/or methodological contributions with broader applicability. In-depth: Mexico (federal and Mexico City), Ecuador, Bolivia, El Salvador; summarized: Brazil, Colombia, Costa Rica, Dominican Republic, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela; included Canada for civil society experience; Argentina and Chile given snapshots.

### Methodology used in the review
- Case selection: Finance Ministry participation and/or institutionalization and/or methodological contribution.
- Deeper analysis focused on Mexico, Ecuador, Bolivia, El Salvador, and Mexico City (Federal District).
- Other country experiences surveyed more briefly.

### II. Gender inequality in the region — key findings and indicators
- Trends and persistent challenges:
  - GDI (time-consistent) higher in 2013 than early 1990s across countries.
  - Improvements linked to legislation, institutional evolution, increased representation of women in parliament and executive positions, women’s increasing economic participation, and access to cash benefits.
  - Persistent challenges: unpaid care work concentrated on women; persistent gender income gap; gap between formal and substantive equality; political participation far from equal; inadequate access to sexual and reproductive health for many; larger gaps for lower income, rural, or minority women.
- Regional summary statistics:
  - Regional average GDI (time-consistent, 2013): 0.972
  - Regional average Gini coefficient: 47.8
  - Regional average gross secondary enrollment: 86.1
  - Regional average labor force participation rate (ages 15-64): 58.0
  - Regional average maternal mortality (per 100,000): 86
- Selected country statistics (examples preserved exactly):
  - Argentina: GDI 0.993; Gini 42.3; Gross secondary enrollment female-to-male ratio 1.11; Labor force participation (female percent) 96.6; Mean monthly earnings female to male ratio 0.67; Maternal mortality 52; Legislation on domestic violence: Yes; Equal ownership rights to property: Yes.
  - Bolivia: GDI 0.935; Gini 48.1; Gross secondary enrollment female-to-male ratio 1.00; Labor force participation 77.4; Mean monthly earnings ratio 0.80; Maternal mortality 206; Legislation on domestic violence: Yes; Equal ownership rights: Yes.
  - Mexico: GDI 0.943; Gini 48.1; Gross secondary enrollment female-to-male ratio 1.08; Labor force participation 89.0; Mean monthly earnings ratio 0.58; Maternal mortality 38; Legislation on domestic violence: Yes; Equal ownership rights: Yes.
  - Uruguay: GDI 1.010; Gini 41.9; Gross secondary enrollment female-to-male ratio 1.14; Labor force participation 96.3; Mean monthly earnings ratio 0.79; Maternal mortality 15; Legislation on domestic violence: Yes; Equal ownership rights: Yes.

### III. Fiscal and regional context for gender budgeting — fiscal environment and heterogeneity
- IMF classification regional composition:
  - Advanced economies: Canada and the United States.
  - Emerging markets (15): Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Mexico, Panama, Paraguay, Peru, Uruguay, Venezuela, RB.
  - Low income developing countries (4): Bolivia, Haiti, Honduras, Nicaragua.
- Regional fiscal indicators:
  - Regional average total revenue: 25.4 percent of GDP
  - Regional average total expenditure: 29.0 percent of GDP
  - Regional average overall balance: -3.6 percent of GDP
  - Regional average gross debt: 43.0 percent of GDP
  - Regional average education expenditure: 4.6 percent of GDP
  - Regional average health expenditure: 4.2 percent of GDP
  - Regional average PEFA overall score: 2.7 (scale converted from A-D to 4-1 with “+” as 0.5)
- Cross-country variation examples:
  - Total revenue (percent of GDP): Costa Rica 13.7; Bolivia 38.0; Ecuador 37.8; Brazil 33.5.
  - Total expenditure (percent of GDP): Guatemala 13.4; Ecuador 41.9; Brazil 39.0.
  - Overall balance (percent of GDP): Peru 0.1; Venezuela, RB -16.2; Regional average -3.6.
  - Gross debt (percent of GDP): United States 104.5; Uruguay 60.3; Regional average 43.0.
- Contextual observation:
  - South America tended to have more expansive public expenditure and benefited from high commodity prices; Mexico and most Central American countries pursued more restrained public expenditure growth, with low long-term economic growth and modest social gains.

### IV. Key gender budgeting initiatives in Latin America — approaches, outcomes, and lessons
- General regional observations:
  - Early initiatives began around 2000; diversity of forms: classification-focused, program design and funding, legislative/parliamentary mechanisms, civil society-led transparency and monitoring.
  - Gender budgeting often conceived as a planning and budgeting methodology (e.g., zero-based or results-based budgeting).
  - Support from parliaments, civil society, academia, and UN agencies (UN Women provided most support).
  - Initiatives at national, state, and municipal levels given decentralization and subnational expenditure responsibilities.
  - Women’s machineries often catalyzed initiatives (example: ISDEMU in El Salvador).

- Mexico — federal and sectoral initiatives
  - Two parallel national initiatives:
    - Civil-society/parliamentary monitoring of Federation Budget expenditures for women’s and gender equity programs since 2000; federal earmarking and registration in an annex of the Budget of the Federation since 2008.
    - Health-sector initiative beginning 2003 with a three-stage methodology: determine gender-oriented needs; analyze program adequacy and policy response; determine needed resources and design indicators to monitor results. First exercise applied to CENSIDA Michoacán.
  - Legal and institutional framework:
    - 2006 federal Budget and Financial Responsibility Law: administration of public resources must be based on a criterion of gender equality; introduced cross-cutting annexes including one on gender equality; Article 17 and Article 59 cited.
    - 2006 Law on Equality between Women and Men: Article 12 requires national government budget allocate resources for compliance with National Policy on Equality.
    - 2007 Budget Decree amendments: parliamentary reporting role for INMUJERES.
    - 2011 Law on Planning: Articles 110 and 111 require assessments and indicators broken down by sex; guarantee equality of opportunity and request information on differentiated impact by sex.
  - Outcomes and metrics:
    - Share of the budget earmarked for achieving equality between women and men rose from 0.13 percent to 0.67 percent between 2004 and 2015 (Garcia, 2014).
    - Inter-Institutional Working Committee monitors earmarked resources (Commission for Equality between Women and Men of the Chamber of Deputies, INMUJERES, civil society, academia).
    - INMUJERES process: preparation of gender-related proposals; harmonization with sectoral programs; incorporation into budget proposal and Annex; quarterly monitoring by Secretariat of Finance and INMUJERES.
  - Lessons:
    - Successes: incorporation into legislation and government processes; participation of Ministry of Finance, parliament, and civil society; sustained across administrations.
    - Challenges: insufficient institutional capacity to monitor and assess programs; low share of overall budget with a gender perspective; lack of harmonization between national and state laws.

- Mexico City (Mexico DF)
  - Launched 2007 with Decree for the Budget of Expenditure 2008 requiring decentralized entities to introduce gender perspective.
  - “Budget with Equity” (2008) and Secretariat of Finance commitment to integrate gender perspective into planning, programming, and budgeting.
  - 2015 program examples: women’s employment, self-employment, economic empowerment; legal and social services for women; social services for vulnerable women (indigenous women, women in prison, women with drug addictions, women-headed households).
  - Notable programs: Viajemos Seguras (Let’s Travel Safely) Program — public transport buses limited to women only; increased security on Metro and other transport; programs addressing violence against women with legal advice, shelters, psychological programs.
  - Evolution: increase in number of programs, participating agencies, and resources over time though share remains a small part of total budget.

- Ecuador — national classification approach and local initiatives
  - National initiative started 2005 with CONAMU, Finance Ministry, and SENPLADES, supported by UNIFEM/UN Women; National Directorate of Fiscal Equity within Finance Ministry’s Undersecretariat of Fiscal Policy.
  - Legal and classification steps:
    - 2010 Organic Code on Planning and Public Finance required compulsory reporting on gaps in gender equality.
    - 2010 budget guidelines required gender focus in central government budget circular and revision of budget classification to include gender equity in functional classification (Function K).
    - Function K categories include: i) social and political participation and citizenship; ii) a life free of violence; iii) sexual and reproductive rights; iv) mechanisms for care providers; v) equality of opportunity in access to work; vi) equality of opportunity to access financial and nonfinancial resources; vii) access to resources for sustainable development actions; viii) ancestral knowledge.
    - 2012: functional classification transformed into Catalog for Orientation of Expenditure on Gender Equality Policies (COGPIG).
  - Requirements and monitoring:
    - Budget guidelines obligate institutions to define at least one activity related to gender equality and register resources in COGPIG; institutions must present reports on use of registered gender resources and results obtained.
  - Empirical observations (Barba, 2014):
    - More than half of resources in COGPIG categorized under institutional framework for advancement of women.
    - Education received 14 percent of resources in 2012 and 16 percent in 2013.
    - Other categories under 5 percent; promotion of access to resources for sustainable development accounted for very little spending.
    - Misallocation concerns: many resources registered in COGPIG not directly useful for gender equality—major recipients included National Police and Ministry of Sport; direct investment in gender equality amounted to less than 1 percent in National Police and between 12 and 13 percent in Ministry of Sport.
  - Local initiatives: Cuenca institutionalized gender perspective via Department of Planning and Management for Gender and Social Equality; Esmeraldas analyzed gender dimensions of budget indicators, allocations, management capacity, and funding sources.
  - Lessons:
    - COGPIG useful for measurement and monitoring but government not fully utilizing it; success requires time, instrument evolution, political will, and capacity-building for public officials and sex-disaggregated data collection.

- Bolivia — local emphasis and municipal experimentation
  - Began 2001 with Andean Region UNIFEM assistance to institutionalize gender-awareness in public budgets and build capacity for women and organizations to participate and monitor budgets.
  - La Paz exercise identified earmarked spending for gender equality equivalent to 0.4 percent of total spending (per Rhonda Sharp categorization).
  - Local experiments:
    - Cercado province of Cochabamba (2005): identified municipal income sources for promoting gender equality and gender indicators for monitoring.
    - Rural municipalities in Norte Potosí and Chaco: methodology to incorporate Sharp’s categories in rural municipalities and expand elsewhere.
  - Legal/institutional development:
    - August 2005: municipal law article obliging municipalities to invest in programs/projects for gender equality and services addressing violence against women.
    - MNT-PSG developed gender indicators for monitoring spending results.

- Other country highlights (selected):
  - El Salvador: national and municipal initiatives since 2002; PpRpG pilot (2011-2013); 2012 law "Looking for a Life Free from Violence for Women" led to earmarked budget resources; proposed reforms include a single budget unit for gender; public administration reform planned for 2017.
  - Brazil: Santo Andre 1997-2000; Recife participatory budgeting with gender perspective since 2001; CFEMEA Women’s Budget annual analysis (2002-2012) covering about 60 federal programs.
  - Canada: no specific government gender budgeting initiative; Status of Women Canada (SWC) and civil society efforts including Alternative Federal Budget (since 1994); 2009 General Audit Office found government lacked gender analysis prompting Departmental Action Plan on Gender-Based Analysis.
  - Guatemala: CPEG introduced; 2013 reform to Organic Budget Law (LOP) Article 17 requires application of CPEG for preliminary budget plans and quarterly execution reports with fines for noncompliance; by first four-month period of 2015, 10 out of 19 municipalities and 3 out of 16 agencies presented reports correctly.
  - Honduras: 2014 budget law Article 10 introduced gender focus in design, preparation, application, monitoring, and assessment; executing institutions must present half-yearly execution reports to National Congress via Commission for Gender Equity.
  - Peru: MIMP and results-based budgeting frameworks; manuals and indicators developed; local initiatives (e.g., Villa El Salvador).
  - Uruguay: first National Care System approved August 2015; Montevideo municipal gender budgeting since 2003; national exercises with INMUJERES and Ministry of Social Development (2011-2013) had limited success.
  - Venezuela: Presidential instruction to incorporate gender focus in 2006 budget; reporting on government employment by sex; centralized agencies required at least one gender-focused policy in annual plans; since 2005 gender section included in draft budget explanatory statement.

### Introduction of the term “Categories of Investment in Gender”
- Definition and purpose:
  - Replaces the concept of expenditure and highlights developmental aspects of allocating resources to promotion of women’s rights and gender equality.
  - Bolivia’s Colectivo Cabildeo completed the first study quantifying municipal resources allocated to gender equality and women rights.
- Five Categories of Investment (methodology origin and use; UN Women, 2013a):
  - Category 1 — Investment on women:
    - Public investment in programs, projects, and services directed exclusively at women across life stages to close gender gaps and further women's autonomy.
    - Examples: laws remedying inequality; leadership training; strengthening women’s organizations; services for citizenship; programs promoting women's employment; projects to ensure ownership of and access to land and means of production by women; programs facilitating access of women to health.
  - Category 2 — Investment for care and sustainability of life:
    - Public investment promoting joint responsibility across government, society, community, and family in social reproduction, care, and sustainability of life; aims for better distribution of domestic and care-related work.
    - Examples: maternity and paternity leave covered by government; time-use measurement and inclusion in statistics; infant education centers; school transport; infrastructure and collective care services; training/awareness-raising targeting men on care tasks.
  - Category 3 — Investment for a culture of equality:
    - Public investment to promote structural changes in patriarchal systems, public management, and power relationships between men and women.
    - Examples: laws/regulations guaranteeing sexual and reproductive rights; addressing domestic and gender violence; promoting gender-equal expression.
  - Category 4 — Redistribution for social and gender equality:
    - Public investment aimed at redistribution to improve living conditions and human rights of the low-income population, indirectly benefiting women.
    - Examples: clean drinking water; public security services; decent housing programs.
  - Indicator framework:
    - Gender equality investment indicator = spending share in total investment.
    - Gender equality investment efficiency indicator = total amount executed in gender equality divided by amount programmed.
    - Composition indicators = share of each investment category.
- Municipal ranking methodology and Bolivia results:
  - UN Women ranking scale: excellent = more than 20 percent; good = between 10 percent and 20 percent; acceptable = 5 percent to 10 percent; deficient = 2 percent to 5 percent; critical = less than 2 percent.
  - Department of Cochabamba (2010): only three municipalities had a rating of good and none was excellent; vast majority were ranked deficient or critical.

### Legislative framework and institutional reforms (Bolivia example)
- Political Constitution of the State (2009) established equivalence of conditions between men and women and government responsibilities: access to health, education and safe maternity; sexual and reproductive rights; incorporation of gender equality values; equal political participation.
- Laws cited: Law 243 against harassment and political violence toward women; Law 348 guaranteeing women a life free of violence.
- Institutional strengthening: Vice Ministry of Equality of Opportunity; Vice Ministry of Decolonization, which includes the Unit for Overcoming Patriarchal Systems (Unidad de Despatriarcalización).
- Priority actions: incorporate gender budgeting perspective into the national Finance Act, budget formulation guidelines, social and economic development plan, financing of equal opportunities and sectoral development plans.

### Gender budgeting and taxation (regional diagnosis)
- Most efforts focused on public expenditures; taxation side less analyzed despite relevance.
- Regional fiscal structure and regressivity:
  - Low taxation relative to GDP; regressive tax structure with indirect taxation providing on average more than 60 percent of total revenue; low personal income tax relevance.
  - Example statistic: average income tax rate for people from the 10th income decile is 5.4 percent; some countries below 3 percent (Honduras, Ecuador, Venezuela and Paraguay) and only Mexico reaching 10 percent.
- Study findings:
  - Mexico and Argentina (international research project, 2008): no explicit gender bias in taxes but implicit bias because more men benefit from exemptions/deductions; female-earner households face highest indirect tax rate in each income quintile.
  - Ecuador, Guatemala, Chile study (Fundación Carolina): extensive exemptions/deductions favor higher-income groups, contributing to gender bias.
  - Bolivia study (Coello Cremade and Fernández Cervantes, 2014): tax system relies on few taxes, low income taxation share, heavy consumption taxes and natural resource taxes; implicit biases arise from regressive features and differential treatment of income sources; women are 24 percent more likely than men to have no access to income.
- Policy implication: tax reform needed to enlarge revenue, make taxation more progressive, and eliminate implicit gender bias from regressive taxation and differential treatment of income sources.

### V. Cross-cutting lessons and conclusions from reviewed initiatives
- Success factors:
  - Participation and buy-in from Finance Ministry and Secretariat of Finance.
  - Legal and regulatory frameworks that institutionalize gender considerations in budgeting (examples: Mexico’s Budget and Financial Responsibility Law; Ecuador’s Organic Code on Planning and Public Finance).
  - Development of budget classification systems and catalogs (Ecuador’s Function K and COGPIG) to track resources for gender equality.
  - Persistent political will, time, capacity building, and sex-disaggregated data for monitoring and evaluation.
  - Civil society and parliamentary oversight to enhance transparency and accountability.
- Common challenges:
  - Limited share of overall budgets explicitly incorporating a gender perspective (earmarking shares remain small).
  - Insufficient institutional capacity to monitor, assess, and ensure appropriateness of registered gender expenditures.
  - Misclassification or registration of expenditures that do not directly invest in gender equality (Ecuador example).
  - Need for harmonization between national and subnational legal frameworks and objectives.
- Conclusions and outstanding questions:
  - Region displays wealth and diversity of gender budgeting initiatives; measurable policy outcomes are difficult to isolate due to budget process complexity.
  - Gender budgeting has empowered women’s organizations and trained public officials, creating a baseline for further progress.
  - Institutionalization and continuity essential for long-term success.
  - Open questions: optimal level of government for gender budgeting initiatives; ways to increase and improve use of gender budgeting tools; how to measure success (single yardstick vs. multiple measures).

### Appendix A — Data template highlights (selected entries)
- Does the government have a gender budgeting initiative:
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- If yes, start year:
  - Bolivia: 2001
  - Ecuador: 2005
  - El Salvador: 2002
  - Mexico: 2000
- Supported by international organizations or bilateral aid agencies:
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: No
- Focus on spending:
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Focus on revenue:
  - Bolivia: No
  - Ecuador: No
  - El Salvador: No
  - Mexico: No
- Gender budgeting in planning and programming:
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Explicit reporting on gender equality spending:
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Gender budgeting incorporated in organic budget or other finance laws:
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Ministry of Finance lead entity:
  - Bolivia: No
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: No
- Subnational government participation:
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Significant civil society participation:
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes

*Source: _wp16153 - 2. Countries by Development Category; introduction of the term “Categories of Investment in Gender” (IMF PDF chapter/section).*

### References .............................................................................................................

### References ....................................................................................................................................41

### Tables
- 1.   Western Hemisphere Selected Indicators of Gender and Income Inequality ......................... 6
- 2.   Western Hemisphere Fiscal Indicators ................................................................................... 8

### Figures
- 1.   GDI, Time-Consistent Version ............................................................................................... 6

*https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2016/_wp16153.pdf*

### 2.   Countries by Development Category .................................................................................

### _wp16153 - 2.   Countries by Development Category ..................................................................................

### Introduction and purpose
- A government’s budget embodies fiscal policies reflecting preferences, priorities, and strategies; gender budgeting integrates concern for gender equality and women’s advancement into the budget to: set goals, analyze revenue and expenditure contributions to inequalities, and change policies to address inequalities.
- Four broad categories of gender budgeting initiatives in Latin America:
  - design of a classification system;
  - design, monitoring, and assessment of policies, programs, actions, and resources to address inequalities between women and men;
  - changing laws to establish legislative basis for gender-related policies, programs, and budgets;
  - encouraging better citizenship.
- Most initiatives in the region focused on the expenditure side of the budget and aimed to increase public resources for programs addressing gender equality, and to improve efficiency, transparency, and accountability of spending.
- Case selection criteria for in-depth review: participation of the Finance Ministry, lasting/institutionalized across administrations, and/or methodological contributions with broader applicability. Highlighted: Mexico (federal and Mexico City), Ecuador, Bolivia, El Salvador; summarized: Brazil, Colombia, Costa Rica, Dominican Republic, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela; included Canada for civil society experience; Argentina and Chile given snapshots.

### Methodology used in the review
- Selected cases based on: Finance Ministry participation and/or institutionalization and/or methodological contribution.
- Focused deeper analysis on Mexico, Ecuador, Bolivia, El Salvador, and Mexico City (Federal District).
- Surveyed other country experiences more briefly.

### II. Gender inequality in the region — key findings and indicators
- Progress: GDI (time-consistent) higher in 2013 than early 1990s across countries; improvements linked to legislation, institutional evolution, increased representation of women in parliament and executive positions, women’s increasing economic participation, and access to cash benefits.
- Persistent challenges: women shoulder main responsibility for unpaid care work; gender income gap persistent; gap between formal and substantive equality; political participation still far from equal; inadequate access to sexual and reproductive health for many women; larger gaps for women from lower income, rural, or minority backgrounds.
- Regional summary statistics (as presented):
  - Regional average GDI (time-consistent, 2013): 0.972
  - Regional average Gini coefficient: 47.8
  - Regional average gross secondary enrollment: 86.1
  - Regional average labor force participation rate (ages 15-64): 58.0
  - Regional average maternal mortality (per 100,000): 86
- Selected country statistics (as listed in Table 1; examples preserved exactly):
  - Argentina: GDI 0.993; Gini 42.3; Gross secondary enrollment female-to-male ratio 1.11; Labor force participation (female percent) 96.6; Mean monthly earnings female to male ratio 0.67; Maternal mortality 52; Legislation on domestic violence: Yes; Equal ownership rights to property: Yes.
  - Bolivia: GDI 0.935; Gini 48.1; Gross secondary enrollment female-to-male ratio 1.00; Labor force participation 77.4; Mean monthly earnings ratio 0.80; Maternal mortality 206; Legislation on domestic violence: Yes; Equal ownership rights: Yes.
  - Mexico: GDI 0.943; Gini 48.1; Gross secondary enrollment female-to-male ratio 1.08; Labor force participation 89.0; Mean monthly earnings ratio 0.58; Maternal mortality 38; Legislation on domestic violence: Yes; Equal ownership rights: Yes.
  - Uruguay: GDI 1.010; Gini 41.9; Gross secondary enrollment female-to-male ratio 1.14; Labor force participation 96.3; Mean monthly earnings ratio 0.79; Maternal mortality 15; Legislation on domestic violence: Yes; Equal ownership rights: Yes.

### III. Fiscal and regional context for gender budgeting — fiscal environment and heterogeneity
- Regional composition by IMF classification:
  - Advanced economies: Canada and the United States.
  - Emerging markets (15): Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Mexico, Panama, Paraguay, Peru, Uruguay, Venezuela, RB.
  - Low income developing countries (4): Bolivia, Haiti, Honduras, Nicaragua.
- Fiscal trends and variation:
  - On average taxes are about 25 percent of GDP (regional average total revenue: 25.4 percent of GDP).
  - Regional average total expenditure: 29.0 percent of GDP.
  - Regional average overall balance: -3.6 percent of GDP.
  - Regional average gross debt: 43.0 percent of GDP.
  - Regional average education expenditure: 4.6 percent of GDP.
  - Regional average health expenditure: 4.2 percent of GDP.
  - Regional average Public Expenditure and Financial Accountability (PEFA) overall score: 2.7 (scale converted from A-D to 4-1 with “+” as 0.5).
- Cross-country variation examples (figures preserved exactly from Table 2):
  - Total revenue (percent of GDP): Costa Rica 13.7; Bolivia 38.0; Ecuador 37.8; Brazil 33.5.
  - Total expenditure (percent of GDP): Guatemala 13.4; Ecuador 41.9; Brazil 39.0.
  - Overall balance (percent of GDP): Peru 0.1; Venezuela, RB -16.2; Regional average -3.6.
  - Gross debt (percent of GDP): United States 104.5; Uruguay 60.3; Regional average 43.0.
- Contextual observation:
  - South America tended to have more expansive public expenditure and benefited from high commodity prices; Mexico and most Central American countries pursued more restrained public expenditure growth, with low long-term economic growth and modest social gains.

### IV. Key gender budgeting initiatives in Latin America — approaches, outcomes, and lessons
- General observations about regional initiatives:
  - Early initiatives began around 2000; diversity of forms: classification-focused, policy/program design and funding, legislative/parliamentary mechanisms, and civil society-led transparency and monitoring.
  - Gender budgeting often conceived as a planning and budgeting methodology (e.g., zero-based or results-based budgeting).
  - Support has come from parliaments, civil society, academia, and UN agencies (UN Women provided most support).
  - Initiatives exist at national, state, and municipal levels given decentralization and subnational expenditure responsibilities.
  - Women’s machineries (national/subnational) often catalyzed initiatives (example: ISDEMU in El Salvador).

- Mexico — federal and sectoral initiatives
  - Two parallel national initiatives:
    - Civil-society/parliamentary monitoring of Federation Budget expenditures for women’s and gender equity programs since 2000; federal earmarking and registration in an annex of the Budget of the Federation since 2008.
    - Health-sector initiative beginning 2003 developing a three-stage methodology: determine gender-oriented needs; analyze program adequacy and policy response; determine needed resources and design indicators to monitor results. First exercise applied to CENSIDA Michoacán.
  - Institutional framework and legal basis:
    - 2006 federal Budget and Financial Responsibility Law: administration of public resources must be based on a criterion of gender equality; introduced cross-cutting annexes including one on gender equality; Article 17 and Article 59 cited.
    - 2006 Law on Equality between Women and Men: Article 12 requires national government budget allocate resources for compliance with National Policy on Equality.
    - 2007 Budget Decree amendments: parliamentary reporting role for INMUJERES.
    - 2011 Law on Planning: guarantees equality of opportunity and requests information on differentiated impact by sex; National Development Plan and annual, sectoral, and special programs must be formulated with a gender perspective; Articles 110 and 111 require assessments and indicators broken down by sex.
  - Outcomes and metrics:
    - The share of the budget earmarked for achieving equality between women and men rose from 0.13 percent to 0.67 percent between 2004 and 2015 (Garcia, 2014).
    - An Inter-Institutional Working Committee monitors earmarked resources (Commission for Equality between Women and Men of the Chamber of Deputies, INMUJERES, civil society, academia).
    - INMUJERES describes a process: preparation of gender-related proposals with INMUJERES; harmonization with sectoral programs; incorporation into budget proposal and Annex; quarterly monitoring by Secretariat of Finance and INMUJERES.
  - Lessons noted:
    - Successes: incorporation of gender budgeting into legislation and government processes; participation of Ministry of Finance, parliament, and civil society; sustained across administrations.
    - Challenges: insufficient institutional capacity to monitor and assess programs; low share of the overall budget incorporates a gender perspective; lack of harmonization between national and state laws.

- Mexico City (Mexico DF)
  - Initiative launched 2007 with Decree for the Budget of Expenditure 2008 requiring decentralized entities to introduce gender perspective.
  - “Budget with Equity” (2008) and Secretariat of Finance commitment to integrate gender perspective into planning, programming, and budgeting.
  - Results and programs (2015 examples): women’s employment, self-employment, economic empowerment (including migrant and young women); legal and social services for women and discouraging gender stereotypes in media; social services for women in vulnerable situations (indigenous women, women in prison, women with drug addictions, women-headed households).
  - Notable outcomes: Viajemos Seguras (Let’s Travel Safely) Program — public transport buses limited to women only; increased security on Metro and other transport; programs addressing violence against women with legal advice, shelters, psychological programs.
  - Evolution: increase in number of programs, participating agencies, and resources over time though share remains a small part of total budget.

- Ecuador — national classification approach and local initiatives
  - National initiative started 2005 with CONAMU, Finance Ministry, and SENPLADES, supported by UNIFEM/UN Women; National Directorate of Fiscal Equity created within Finance Ministry’s Undersecretariat of Fiscal Policy.
  - Legal and classification steps:
    - 2010: Organic Code on Planning and Public Finance required compulsory reporting on gaps in gender equality.
    - 2010 budget guidelines required gender focus in central government budget circular and revision of budget classification to include gender equity in functional classification (Function K).
    - Function K categories include: i) social and political participation and citizenship; ii) a life free of violence; iii) sexual and reproductive rights; iv) mechanisms for care providers; v) equality of opportunity in access to work; vi) equality of opportunity to access financial and nonfinancial resources; vii) access to resources for sustainable development actions; viii) ancestral knowledge.
    - 2012: functional classification transformed into Catalog for Orientation of Expenditure on Gender Equality Policies (COGPIG).
  - Requirements and monitoring:
    - Budget guidelines obligate institutions to define at least one activity related to gender equality and register resources in COGPIG; institutions must present reports on use of registered gender resources and results obtained.
  - Empirical observations (Barba, 2014):
    - More than half of resources in COGPIG categorized under institutional framework for advancement of women (gender perspective in public sector management and program design/monitoring).
    - Education received 14 percent of resources in 2012 and 16 percent in 2013 (women’s literacy, basic education, curriculum change, training).
    - Other categories under 5 percent; promotion of access to resources for sustainable development accounted for very little spending.
    - Misallocation concerns: many resources registered in COGPIG were not directly useful for gender equality—major recipients included National Police and Ministry of Sport; direct investment in gender equality amounted to less than 1 percent in National Police and between 12 and 13 percent in Ministry of Sport.
  - Local initiatives: Municipality of Cuenca institutionalized gender perspective via Department of Planning and Management for Gender and Social Equality; Municipality of Esmeraldas analyzed gender dimensions of budget indicators, allocations, management capacity, and funding sources.
  - Lessons:
    - COGPIG is useful for measurement and monitoring but government not fully utilizing it; success requires time, instrument evolution, political will, and capacity-building for public officials and sex-disaggregated data collection.

- Bolivia — local emphasis and municipal experimentation
  - Began 2001 with Andean Region UNIFEM assistance to institutionalize gender-awareness in public budgets and build capacity for women and organizations to participate and monitor budgets.
  - La Paz exercise (early initiative) identified earmarked spending for gender equality equivalent to 0.4 percent of total spending (per Rhonda Sharp categorization).
  - Local experiments (examples):
    - Cercado province of Cochabamba (2005): identified municipal income sources for promoting gender equality and gender indicators for monitoring.
    - Rural municipalities in Norte Potosí and Chaco: methodology to incorporate Sharp’s categories in rural municipalities and expand elsewhere.
  - Legal/institutional development:
    - August 2005: national government and MNT-PSG agreed on municipal law article obliging municipalities to invest in programs/projects for gender equality and services addressing violence against women.
    - MNT-PSG developed gender indicators for monitoring spending results.

### V. Cross-cutting lessons and conclusions from reviewed initiatives
- Diversity of approaches reflects heterogeneity of region and decentralization; initiatives ranged from classification systems to earmarked programs, legislative mandates, parliamentary monitoring, and civil society-led transparency.
- Key success factors:
  - Participation and buy-in from Finance Ministry and Secretariat of Finance (critical in Mexico and Mexico City).
  - Legal and regulatory frameworks that institutionalize gender considerations in budgeting (Mexico’s Budget and Financial Responsibility Law, Law on Equality; Ecuador’s Organic Code on Planning and Public Finance).
  - Development of budget classification systems and catalogs (Ecuador’s Function K and COGPIG) to track resources for gender equality.
  - Persistent political will, time, capacity building, and sex-disaggregated data for monitoring and evaluation.
  - Civil society and parliamentary oversight to enhance transparency and accountability.
- Common challenges:
  - Limited share of overall budgets explicitly incorporating a gender perspective (earmarking shares remain small even where present).
  - Insufficient institutional capacity to monitor, assess, and ensure appropriateness of registered gender expenditures.
  - Misclassification or registration of expenditures that do not directly invest in gender equality (Ecuador example).
  - Need for harmonization between national and subnational legal frameworks and objectives.

*Source: _wp16153 - 2.   Countries by Development Category ..................................................................................*

### introduction of the term “Categories of Investment in Gender,” to replace the concept of

### _wp16153 - introduction of the term “Categories of Investment in Gender,” to replace the concept of

### Introduction and definition: "Categories of Investment in Gender"
- The term replaces the concept of expenditure and highlights the developmental aspects of allocating resources to the promotion of women’s rights and gender equality.
- Bolivia’s Colectivo Cabildeo completed the first study on “Sources of Municipal Investment and Possibilities for Municipal Investment in Gender Equity,” which quantified municipal resources allocated to gender equality and women rights and supported demands for specific budget allocations.

### The five Categories of Investment (methodology origin and use)
- The methodology now includes five categories of investment (UN Women, 2013a) and has been used for analysis of local budget allocations and advocacy; it is recommended for national use as well.
- Category 1 — Investment on women:
  - Public investment in programs, projects, and services directed exclusively at women across life stages to close gender gaps and further women's autonomy.
  - Examples: laws remedying inequality (e.g., law against political harassment of women, quota laws); leadership training; strengthening women’s organizations; services for citizenship (birth certificates, identity cards, electoral registration); programs that promote women's employment; projects to ensure ownership of and access to land and means of production by women; programs facilitating access of women to health.
- Category 2 — Investment for care and sustainability of life:
  - Public investment promoting joint responsibility across government, society, community, and family in social reproduction, care, and sustainability of life; aims for better distribution of domestic and care-related work.
  - Examples: maternity and paternity leave covered by government; time-use measurement and inclusion in statistics; infant education centers; school transport; infrastructure and collective care services (communal meals, public laundries, solid waste recycling); training/awareness-raising targeting men on care tasks.
- Category 3 — Investment for a culture of equality:
  - Public investment to promote structural changes in patriarchal systems, public management, and power relationships between men and women; actions to generate institutional and societal change toward social, ethnic, and gender equality.
  - Examples: laws/regulations guaranteeing sexual and reproductive rights; addressing domestic and gender violence; promoting gender-equal expression.
- Category 4 — Redistribution for social and gender equality:
  - Public investment aimed at redistribution to improve living conditions and human rights of the low-income population, indirectly benefiting women and expanding their opportunities.
  - Examples: clean drinking water (domestic, community, public basins, etc.); public security services; decent housing programs.
- Indicator framework:
  - Gender equality investment indicator = spending share in total investment.
  - Gender equality investment efficiency indicator = total amount executed in gender equality divided by amount programmed.
  - Composition indicators = share of each investment category.

### Municipal ranking methodology and Bolivia results
- UN Women proposed a ranking scale where if at least 20 percent of investment was undertaken for gender equality, a municipality was ranked excellent; lower rankings assigned for smaller proportions.
- The ranking categories are: excellent = more than 20 percent, good = between 10 percent and 20 percent, acceptable = 5 percent to 10 percent, deficient = 2 percent to 5 percent, critical = less than 2 percent.
- Application in Department of Cochabamba (2010): only three municipalities had a rating of good and none was excellent; the vast majority were ranked deficient or critical.

### Legislative framework and institutional reforms (Bolivia example)
- Political Constitution of the State (2009) established equivalence of conditions between men and women and government responsibilities: access to health, education and safe maternity; sexual and reproductive rights; incorporation of gender equality values; equal political participation.
- Laws cited: Law 243 against harassment and political violence toward women; Law 348 guaranteeing women a life free of violence.
- Institutional strengthening: Vice Ministry of Equality of Opportunity; Vice Ministry of Decolonization, which includes the Unit for Overcoming Patriarchal Systems (Unidad de Despatriarcalización).
- Priority actions: incorporate gender budgeting perspective into the national Finance Act, budget formulation guidelines, social and economic development plan, financing of equal opportunities and sectoral development plans.

### Cross-country initiatives, lessons, and common success factors
- General observation: initiatives strongest when Ministry of Finance supported them, but success also depended on collaboration with women’s machineries, civil society, and international organizations (chiefly UN Women).
- Civil society and women’s machineries were critical in encouraging governments and monitoring outcomes.
- Clear goals for gender equality and research-guided program design aided success.
- Parliamentary role: provided legal frameworks and catalyzed executive action.
- Main achievement: more systematic incorporation of gender-oriented concerns throughout the budget process and strengthened transparency and monitoring.
- Continuity challenge: distinct lack of continuity in gender budgeting efforts across government administration changes; need to institutionalize processes.

### Country-specific highlights (selected examples and milestones)
- Bolivia: local-to-national diffusion; methodological creation of five categories; Cochabamba municipal assessment (2010) with only three "good" municipalities and none "excellent."
- El Salvador: national and municipal initiatives starting in 2002; PpRpG pilot (2011-2013) across multiple ministries; 2012 law "Looking for a Life Free from Violence for Women" led to earmarked budget resources; proposed reforms to create a single budget unit for gender and other strengthening measures; public administration reform culmination planned for 2017.
- Brazil: earliest regional initiatives (Santo Andre 1997-2000); Recife participatory budgeting with gender perspective since 2001; CFEMEA's Women’s Budget annual analysis (2002-2012) covering about 60 federal programs.
- Canada: no specific government gender budgeting initiative; Status of Women Canada (SWC) and civil society efforts including the Alternative Federal Budget (since 1994) with a specific gender chapter; 2009 General Audit Office concluded government lacked gender analysis, prompting a Departmental Action Plan on Gender-Based Analysis.
- Guatemala: Gender-Related Classification System (CPEG) introduced; reforms to Organic Budget Law (LOP) in 2013 (Article 17) require application of CPEG for preliminary budget plans and quarterly execution reports with fines for noncompliance; by first four-month period of 2015, 10 out of 19 municipalities and 3 out of 16 agencies presented reports correctly.
- Honduras: 2014 budget law Article 10 introduced gender focus in design, preparation, application, monitoring, and assessment; executing institutions must present half-yearly execution reports to National Congress via the Commission for Gender Equity.
- Peru: MIMP and results-based budgeting frameworks; manuals and indicators developed; local initiatives (e.g., Villa El Salvador) with municipal orders for Women’s Offices.
- Uruguay: first National Care System approved August 2015; Montevideo municipal gender budgeting since 2003; national exercises with INMUJERES and Ministry of Social Development (2011-2013) had limited success.
- Venezuela: Presidential instruction to incorporate gender focus in 2006 budget; reporting on government employment by sex; centralized agencies required at least one gender-focused policy in annual plans; since 2005 gender section included in draft budget explanatory statement.

### Gender budgeting and taxation (regional diagnosis)
- Most efforts focused on public expenditures; taxation side less analyzed despite relevance.
- Regional fiscal structure: low taxation relative to GDP; regressive tax structure with indirect taxation providing on average more than 60 percent of total revenue; low personal income tax relevance.
- Example statistic: average income tax rate for people from the 10th income decile is 5.4 percent; some countries below 3 percent (Honduras, Ecuador, Venezuela and Paraguay) and only Mexico reaching 10 percent.
- Findings from studies:
  - Mexico and Argentina (international research project, 2008): no explicit gender bias in taxes but implicit bias because more men benefit from exemptions/deductions; female-earner households face highest indirect tax rate in each income quintile.
  - Ecuador, Guatemala, Chile study (Fundación Carolina): extensive exemptions/deductions favor higher-income groups, contributing to gender bias.
  - Bolivia study (Coello Cremade and Fernández Cervantes, 2014): tax system relies on few taxes, low income taxation share, heavy consumption taxes and natural resource taxes; implicit biases arise from regressive features and differential treatment of income sources; women are 24 percent more likely than men to have no access to income.
- Policy implication: tax reform needed to enlarge revenue, make taxation more progressive, and eliminate implicit gender bias from regressive taxation and differential treatment of income sources.

### Conclusions, observations, and outstanding questions
- The region shows a wealth and diversity of gender budgeting initiatives at national and local levels; measurable policy outcomes are difficult to isolate due to budget process complexity.
- Gender budgeting has empowered women’s organizations and trained public officials, creating a baseline for further progress.
- Institutionalization and continuity are essential for long-term success.
- More application at the subnational level and better coordination across government levels would benefit the region.
- Key open questions raised:
  - Is there an optimal level of government at which gender budgeting initiatives can be promoted?
  - Is there a way to increase and improve the use of gender budgeting tools?
  - How should the success (or failure) of gender budgeting initiatives be measured — with a single yardstick or different ones depending on aims and scope?

*Source: _wp16153 - introduction of the term “Categories of Investment in Gender,” to replace the concept of (IMF PDF chapter/section)*

### References

### References

### Bibliographic coverage
- Extensive reference list of research, reports, legal documents, and program evaluations on gender budgeting and gender-responsive public finance, including works by Almeida, Arévalo Serrano, Barba, CEAMEG, Christie and Thakur (IMF Working Paper 16/154), Coello, ECLAC, INMUJERES, UN Women, UNIFEM, UNFPA, Stotsky (IMF Working Papers 16/21 and 16/149), national Ministries of Finance and gender agencies from Latin American and Caribbean countries, and other country reports and academic theses.
- Geographic focus of cited materials: Latin America and the Caribbean (Bolivia, Ecuador, Mexico, Venezuela, Chile, Guatemala, El Salvador, Paraguay, Peru, Uruguay, Nicaragua, Canada), with regional or international organizations (ECLAC, UN Women, UNIFEM, UNFPA, ILO, MDG Fund, IMF) represented.
- Types of documents cited: methodological guides, government decrees and agreements, thematic manuals, program evaluations, working papers, conference presentations, theses, budget analyses, and legal instruments.

### Key thematic emphases across the references
- Methodologies for monitoring gender-responsive budgeting and incorporation of gender perspective in public investment and budget classification.
- Country-specific case studies and program evaluations: gender budgeting practices at federal, state, municipal levels; participatory gender-responsive budgeting; effects on women’s employment prospects.
- Legal and institutional frameworks: constitutional standing, organic budget or finance laws, government agreements and decrees, gender policy approvals.
- Sectoral focuses highlighted in the literature: education, health, care policies, justice and security (violence against women), employment and entrepreneurship, physical infrastructure in selected contexts.
- Tools and outputs covered: gender budget classification systems, thematic classifiers, budget circulars, technical guides, outcome reports, and sustainability proposals for regional programs.

### Appendix A — Gender Budgeting in the Western Hemisphere Data Template (selected entries)
- Countries covered in the template excerpt: Bolivia, Ecuador, El Salvador, Mexico.
- Does the government have a gender budgeting initiative
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- If yes, start year
  - Bolivia: 2001
  - Ecuador: 2005
  - El Salvador: 2002
  - Mexico: 2000
- Supported by international organizations or bilateral aid agencies
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: No
- Tied to MDGs or national development plan or gender equality strategy
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Focus on spending
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Spending focus on key human development (education and health)
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Spending focus on physical infrastructure (transport, water, electricity, and energy)
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Not known
- Spending focus on justice and security (violence against women, judicial assistance)
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Spending focus on jobs, entrepreneurship, wages etc
  - Bolivia: Yes
  - Ecuador: Not known
  - El Salvador: Yes
  - Mexico: Yes
- Structural reforms in spending (subsidies, transfers, incentive or distributional objectives)
  - Bolivia: Not known
  - Ecuador: Yes
  - El Salvador: Not known
  - Mexico: Yes
- Focus on revenue
  - Bolivia: No
  - Ecuador: No
  - El Salvador: No
  - Mexico: No
- Personal income tax focus
  - Bolivia: No
  - Ecuador: No
  - El Salvador: No
  - Mexico: No
- Other tax focus, including general or selective sales and trade
  - Bolivia: No
  - Ecuador: No
  - El Salvador: No
  - Mexico: No
- Broad statement of goals of Minister of Finance
  - Bolivia: Not known
  - Ecuador: Not known
  - El Salvador: Not known
  - Mexico: Not Known
- Gender budgeting statement in budget documentation
  - Bolivia: Not known
  - Ecuador: Yes
  - El Salvador: Not known
  - Mexico: Yes
- Gender budgeting circular or related to instruct the bureaucracy
  - Bolivia: Not known
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Gender budgeting in planning and programming
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Gender budgeting outcome report or audit
  - Bolivia: Not known
  - Ecuador: Not known
  - El Salvador: Not known
  - Mexico: Not Known
- Explicit reporting on gender equality spending
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Gender budgeting has constitutional standing
  - Bolivia: Yes
  - Ecuador: Not known
  - El Salvador: No
  - Mexico: No
- Gender budgeting is incorporated in organic budget or other finance laws
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Ministry of Finance lead entity
  - Bolivia: No
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: No
- Other ministries play consequential role and which
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes; Women ́s Machinery
- Subnational government
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes
- Significant encouragement or participation of civil society
  - Bolivia: Yes
  - Ecuador: Yes
  - El Salvador: Yes
  - Mexico: Yes

*Source: References and Appendix A: Gender Budgeting in the Western Hemisphere Data Template from the content unit.*

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