18 Advancing Gender Equality in Nepal: Refining gender-responsive budgeting for transformative impact 6. Key Areas of Enhanced Gender Equality Driving Positive Economic Performance A. Labour market D. Investment in women’s health Increased gender equality in labour markets is a key channel towards better economic performance. Particularly positive impacts on employment rates and economic growth are linked to increased female participation in the labour force, reduction of the gender pay gap, and gender equality in economic decision making. Reducing the gender employment gap, increasing women’s share in formal sector employment, removing gender segregation in occupations, and increasing the ratio of women to men among both managers and workers, all lead to positive growth effects. Women’s health and well-being, including maternal and reproductive health is another aspect contributing to not only individual, but also crucial social and economic benefits. Despite some progress, gender disparities persist in various areas beyond labour-force participation and education, including health, access to credit, technology, and income. GRB can be a valuable tool for addressing these challenges by enabling better resource allocation and policy implementation at all levels of government. E. Elimination of gender-based violence B. Social infrastructure Availability, access to, affordability and quality of social infrastructure, e.g. child care, health care and education are crucial factors in securing positive impacts on various aspects of economic performance, as these improve women’s access to the(formal) labour market. C. Investing in girls’ education Investing in girls’ education and increased gender equality in education, including reducing drop­out rates of girls, is another key transmission channel to achieve hugely positive economic performance. Gender equality in education policies has been found to strongly influence economic performance across different regions. Also, reducing the gender pay gap and increasing women’s control over household resources yield significant economic benefits. Gender-based violence(GBV) carries significant economic costs. GBV leads to lower labour supply, reduced productivity, and less investment in human capital for women and children. The impact can be intergenerational, where children who witness or experience GBV may suffer long­term consequences such as poor educational outcomes, mental health issues, and future involvement in violence, leading to additional social and economic costs. Addressing GBV effectively has significant economic benefits in terms of economic performance, and reducing public expenditures related to the effects of GBV. F. Economic, political and social empowerment of women Empowering women as economic, political, and social actors can lead to positive impacts on policy choices and institutional representation. For example, in India, giving power to women at the