6 Advancing Gender Equality in Nepal: Refining gender-responsive budgeting for transformative impact 1. Introduction This Strategy Paper is based on a comprehensive baseline paper on the status of gender-responsive budgeting(GRB) in Nepal and on a series of consultation meetings with government officials, civil society and international development partners, as well as on feedback from a two-day GRB training with parliamentarians in September 2024. The main guiding question in this Strategy Paper is: What is an appropriate and suitable strategy to promote GRB in a more transformative way, towards gender equality and more prosperous economic development and well-being for all? GRB is vital to promote gender equality. By integrating gender-equality perspectives and priorities into fiscal and budgetary policies, governments can allocate resources in ways that advance women’s rights, address gender disparities and promote gender equality. Research confirms that gender equality is a key driver of economic growth, macroeconomic stability and poverty reduction. Investment in gender equality unlocks economic productivity and growth, increases employment, reduces poverty, and improves the well-being of all. 1 This is of crucial importance in the context of the overlapping crises, such as natural disasters, climate change, food insecurity, low growth, and high debt burdens. Economies with more gender equality in income show faster and more durable growth. GRB is a set of tools to integrate gender equality into the whole planning and budgeting process, including of public finance management (PFM) and fiscal policies. If fully applied, it is a transformative tool and approach to promote gender equality, women’s empowerment, equitable societies, sustainable economic performance and the well-being of all citizens. 1 Elson, Diane, Seth, Anuradha(ed.)(2019): Gender equality and inclusive growth: Economic Policies to Achieve Sustainable Development, UN Women, https://www.unwomen.org/en/digital-library/publications/2019/01/gender-equality-and-inclusive-growth; Cuberes, David/Teignier, Mark(2016): Aggregate effects of gender gaps in the labor market: A quantitative estimate. Journal of Human Capital, 10, 1–32. https://doi.org/10.1086/683847; Gopinath, Gita(2022): Gender Equality Boosts Economic Growth and Stability, https://www.imf.org/en/News/Articles/2022/09/27/sp092722-ggopinath-kgef-gender-korea