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Gender & Fiscal Policies. Ritu Dewan Department of Economics University of Mumbai. Contextualising Issues. Inclusive Growth v/s Inclusive Development Revenue & Fiscal Deficits Tax : GDP Ratio (wealth; capital gains; financial transactions, etc ) Commodity Fetishism
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Gender & Fiscal Policies RituDewan Department of Economics University of Mumbai
Contextualising Issues • Inclusive Growth v/s Inclusive Development • Revenue & Fiscal Deficits • Tax : GDP Ratio (wealth; capital gains; financial transactions, etc) • Commodity Fetishism • Unit of analysis; motive for production • Patriarchy as Macroeconomic Construct
Direct Taxes: Income Tax & Women’s Labour Joint Taxation: greater the difference between spouses’ incomes, higher her earned income is taxed; deterrent to participation in ‘gainful’ employment; fall in woman’s labour supply. Individual Taxation: economic gain of working is dependent upon her earnings & not her location in the patriarchal structure.
Gender Bias in PIT • France (1983): woman as independent tax-payer • Netherlands (1984): repeal of higher basic tax allowance given to married men • U.K. (1990); Ireland (1993): repeal of Compulsory Joint Tax filed only in husband’s name • South Africa (1995): single Income Tax rate irrespective of gender & marital status • -------Married Person • -------Unmarried Person • -------Married Woman • India: Hindu Undivided Family
Direct Taxes: Stamp Duty Delhi: 6 % vs 4 % (1% discount for Joint Registration) Haryana: 6 % vs 4 % Madhya Pradesh: 8 % vs 6 % Uttar Pradesh: 5 % vs 4 % Punjab (urban) : 8 % vs 7 %
Indirect Taxation: VAT… • Success only where Tax : GDP ratio is high, & where dependence on international trade is low • Inflationary • Anti Labour-intensive industries, as ratio of selling price is higher compared to capital-intensive; surplus labour economies • Impact on informal economy
…Commodity Taxes: VAT… • Commodity taxes alter relative prices of taxed & untaxed goods, and hence transform individual & household decisions about consumption, production & investment. • VAT esp has a greater anti-women & anti-poor impact, given the fact that these sections typically spend a larger proportion of their income on basic consumption goods; low earners therefore pay a higher average tax rate.
…Commodity Taxes: VAT… Gender biases in all consumption taxes manifest in 1. choice of commodities & services covered 2. consumption & maintenance patterns of men & women. Egs: • VAT on processed wheat directly impacts women, the bias thus not being ‘implicit’. Women, as ‘carers’, now buy grains, and increase time spent on ‘unproductive’ activity. • Reduced subsidies on cooking gas & kerosene directly affect health & time use pattern; women thus pay ‘hidden’ tax to the economy as a direct result of change in macroeconomic policies.
Other Illustrations • Pension Policies • Regularisation of Medical Insurance • Child-Care exemptions • Female-headed Households
14th Finance Commission • “levels of subsidies required”; “pricing of public utilities”: cooking gas, water, sanitation • Subsidies v/s Exemptions • Conditionalities of transfer of resources to states: child sex ratio • WAI: Basis of devolution of funds (Well-being Attainment Index) • Political Federalism v/s Economic Federalism
Fiscal Strategies & Work Burden 1. ‘Work’: Paid & Unpaid (income-earning; income-saving; income augmenting) 2. ‘House’ work 3. ‘Fiscal-Work’: reduced subsidies & increased taxes 4. State schemes Financial & Fiscal Strategies as Gendered Equalisers
