Policy Papers

<p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; At the request of the Italian Presidency of the G7, the IMF has prepared a
paper on gender-budgeting as a contribution to the G7 initiative on
equality. The paper provides an overview of gender-responsive budgeting
concepts and practices in the G7 countries. It summarizes recent trends in
gender equality in G7 and advanced countries, noting that while equality
has improved overall, exceptions and gaps remain. Recognizing that many
fiscal policies have gender-related implications, this paper:
</p>
<ul>
<li>
Sets out the main fiscal policy instruments, both expenditure and tax,
that have a significant impact on gender equality.
</li>
<li>
Provides a conceptual framework for the public financial management
(PFM) institutions that play an enabling role in implementing
gender-responsive fiscal policies. These instruments include gender
budget statements, gender impact assessments, performance-related
budget frameworks, and gender audits. Ministries of finance have an
especially important role in promoting and coordinating gender
budgeting, and associated analytical tools.
</li>
<li>
Provides an assessment of the status of gender budgeting in the G7
countries. In preparing the paper, the IMF carried out a survey of PFM
institutions and practices in the G7, as well as in three comparator
countries that are relatively strong performers in developing
gender-responsive budgeting (Austria, Belgium, and Spain). This
information was complemented by other sources, including recent studies
by the OECD and the World Bank.
</li>
</ul>
<p>
The main policy implications and conclusions of the paper include:
</p>
<ul>
<li>
Well-structured fiscal policies and sound PFM systems have the
potential to contribute to gender equality, furthering the substantial
progress already made by the G7 countries.
</li>
<li>
While G7 countries have made effective use of a wide range of fiscal
and non-fiscal policies to reduce gender inequalities, there has
generally been less progress in developing effective gender-specific
PFM institutions; embedding a gender dimension in the normal budgeting
and policy-making routines varies across G7 countries and is not done
systematically.
</li>
<li>
Fiscal policy instruments of relevance to increasing gender equality
include the use of tax and tax benefits to increase the supply of
female labor, improved family benefits, subsidized child-care, other
social benefits that increase the net return to women&rsquo;s work, and
incentives for businesses to encourage the hiring of women.
</li>
</ul>