The mainstream of women in development planning is critical in determining the extent to how much women could participate and obtain benefit from development process. Understanding the relationship between macroeconomic policies and Central and State budgets in the context of economic reforms, as it has influenced women’s lives in several ways. It is economic sense to make national budgets gender sensitive, as it is more effective way in targeting government expenditure to women specific activities. The present study is to spell out the Union and State level scenario towards Women Component Plan (WCP) as a gender budgeting tool. It analyses outlay/expenditure under component plan for the period ranging from 1997-98 to 2011- 12. Under WCP, both Central and State Government are required to ensure that at least 30 percent of funds are earmarked for women under various schemes of ‘women related’ ministries/departments. The outlay/expenditure under WCP has been fluctuating during this period. There is an apparent fall of Rs. 2,441.43 crore in 2007-08 in Gender Budget allocation for women.