Introduction

Purpose

The Public Expenditure and Financial Accountability (PEFA) program provides a framework for assessing and reporting on the strengths and weaknesses of Public Financial Management (PFM) using quantitative indicators to measure performance. Nepal has completed two PEFA Assessments, the first report was published in 2008, and the second in 2015. The gender assessment was not included in these PEFA Assessments as the supplementary framework was introduced only later. The government conducted this first GRPFM Assessment as a self-assessment with funding from the Nepal PFM Multi- Donor Trust Fund and technical support from the World Bank. This is as a supplementary assessment to the Nepal PEFA Assessment 2022, and it is published as a sperate report. 

The purpose of the PEFA Supplementary Assessment regarding gender-responsive PFM is to collect information about the extent to which gender is mainstreamed in Nepal’s public financial management system. Using this information, a baseline would then be established for future assessments. The GoN has taken various steps to mainstream gender, and the assessment results are expected to facilitate the measurement of progress. The findings are also envisaged to serve as input to the government’s existing efforts to mainstream gender equality. 

Background

The subsection presents an overview of the current status of integrating gender considerations in public financial management, including the government’s gender equality policy, strategy, action plans, and specific gender-responsive PFM initiatives. It also sets out the legal and regulatory procedures that have been adopted, as well as the institutional structure for supporting GRPFM. 

The Constitution of Nepal guarantees the right to equality, which has provided a strong foundation for ensuring the equality of all citizens before the law. This constitutional provision emphasizes non-discrimination on the basis of origin, religion, race, caste, tribe, sex, economic condition, language, region, ideology, or any other similar ground. The country has implemented policy frameworks for gender equality, which have led to a rise in the political representation of women and other excluded groups. Following the federal restructuring of Nepal in 2015, the political representation of women has significantly increased. The Constitution mandates that 40 percent of all elected representatives at the local level must be women, with an additional 20 percent quota for Dalit. Similarly, it mandates that 33 percent of all elected representatives at the federal and provincial levels must be women, with additional quotas for other marginalized groups. 

The government has demonstrated its commitment to gender equality, women’s empowerment, and social inclusion as a signatory to various international conventions that include commitments regarding women’s empowerment and gender equality. The government is also committed to the United Nations (UN) Sustainable Development Goals (SDGs). Regarding SDG 5 (Achieve Gender Equality and Empower Women and Girls), the government has identified specific targets. These include (i) the elimination of wage discrimination for similar work; (ii) the elimination of physical/ sexual violence; (iii) the elimination of all harmful practices; (iv) increasing the number of seats held by women in the national parliament; and (v) increasing women’s share in public service decision-making positions 

There are various laws, policies, and procedural provisions regarding uphold to gender equality and social inclusion. The government has enacted Some Nepal Act Amendment Act, 2006 which amends related provisions of various concerned acts to ensure gender equality. The Domestic Violence (Offense and Punishment) Act, 2009; and the National Gender Equality Policy, 2020 are targeted at the promotion and protection of the rights of women. The Fifteenth Plan (2019/20 - 2023/24) also reinforces the GoN’s commitment to implement constitutional provisions and to Gender Equality and Social Inclusion (GESI). The second amendment 2007 to the Civil Service Act, 1992 provisions that of 100 vacant posts, 45 percent be filled through competition among candidates of respective clusters. This 45 percent must comprise 33 percent women, 27 percent Adivasi Janajatis, 22 percent Madhesis, 9 percent Dalits, 5 percent persons with disabilities, and 4 percent from other backward classes. This provision is also applied in the police, the armed police force, the Nepal army, and government business enterprises. The Sexual Harassment at Workplace Prevention Act, 2017, provides the legal framework to ensure a safe working environment for all. The Ministry of Federal Affairs and General Administration (MoFAGA) issued model acts for local governments that integrate gender and inclusion principles. The Local Government Operation Act, 2017 has also incorporated several provisions for promoting gender equality and social inclusion. 

The Gender Equality Policy 2020 is focused on promoting the economic empowerment of women, enabling their meaningful involvement in different aspects of society, and putting an end to gender-based violence and harmful traditions. In the same vein, the Gender Equality and Social Inclusion Policy 2021 strives to uplift marginalized and excluded communities by providing them access to existing mechanisms and development benefits. Eight ministries - including the Ministry of Physical Infrastructure and Transport, the Ministry of Water Supply, the Ministry of Education, Science and Technology, and the Ministry of Health and Population - have prepared GESI strategies and action plans that are specific to their respective ministries. Moreover, according to the Intergovernmental Fiscal Arrangement Act of 2017, the GoN may provide grants to provincial and local governments, including a special grant to improve or uplift economically, socially, or in any other form, discriminated classes or communities. 

The National Women Commission (NWC) is a Constitutional Body entrusted with the task of reviewing, monitoring, and evaluating the legal provisions, policies, and programs of the government that are aimed at women’s empowerment. The Constitution has provided the rights to the Commission to examine the policies and programs in regard to the rights of women and set forth recommendations for its implementation to the government. In addition, it has the power to receive and investigate complaints related to violence, victimization, and restrictions against women, making it a crucial authority for women’s rights protection and promotion. 

The Ministry of Women, Children, and Senior Citizens (MoWCSC) is responsible for addressing issues related to gender equality and women’s empowerment. As a part of this effort, every ministry is required to nominate a Gender Focal Point to ensure the integration of gender aspects in sectoral policies. The Ministry of Finance (MoF) has established a Gender-Responsive Budgeting (GRB) Committee to provide guidance on gender-responsive budgeting to various ministries and subnational governments. The National Planning Commission (NPC) has created a Good Governance and Social Development Division, as well as a Health, Women, Children, and Senior Citizen Section to promote social development and welfare. 

Since 2007, the GoN’s GRB guidelines have demanded that all government interventions be gender-marked as directly responsive, indirectly responsive, or neutral to women’s progress. Since the fiscal year 2007/08, all governmental agencies were mandated to report the GRB for each budget program head in their budgeting and program system. A functionality to incorporate GRB was introduced in the Line Ministry Budget Information System (LMBIS) in 2013.4 In 2020, the MoF issued a model GRB guideline for the subnational governments to develop their budgets following a GRB process. It enables the provincial and local governments to define the activities of selected projects, as well as to categorize them into gender-specific, supportive, or neutral projects. They then apply a formula to calculate the project budget and code them as 1 for directly supportive, 2 for indirectly supportive, and 3 as neutral.

An outcome of the implementation of gender considerations in climate change through the National Climate Change Gender Action Plan of 2012 was the establishment of a climate budget code to monitor public spending on climate action. The National Climate Change Policy of 2019 provisioned to mainstream gender equality and social inclusion into climate change mitigation and adaptation programs. The GESI Strategy and Action Plan on Climate Change (2020 - 30) delineates sector-specific approaches aimed at enhancing the accessibility of resources and decision-making processes on climate action for women and vulnerable and marginalized groups. It also aims to bolster adaptive capacity to climate impacts.