UT Administration and Hill Councils to Receive Funds for Development
*Formal announcement expected soon
Sanjeev Pargal
JAMMU, Dec 20: The Union Ministry of Finance, led by Nirmala Sitharaman, is preparing to reverse a budget cut of Rs 976 crore affecting the Union Territory of Ladakh. A formal announcement regarding this is anticipated shortly. This decision will enable the UT administration to commence additional development projects in the Himalayan region and support the two Autonomous Hill Development Councils, which each faced a loss of Rs 110 crore due to the budget reduction.
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According to official sources, a compelling case was made by the UT administration, including Lieutenant Governor Brig (Retd) BD Mishra and his Advisor Pawan Kotwal, to the Union Ministries of Home and Finance for the restoration of the Rs 976 crore budget cut intended for development projects. Elected officials, including Ladakh’s Lok Sabha member and the Chairpersons-cum-CECs of both Leh and Kargil Hill Development Councils, as well as senior BJP leaders and various stakeholders, also advocated for this issue, emphasizing the need for funding to support the Union Territory’s developmental initiatives.
“The UT administration has received encouraging feedback from both ministries, and it is expected that the majority of the previously cut funds will soon be restored,” sources indicated.
As per officials, Ladakh was allocated Rs 3076 crore for its capital expenditure (Capex), intended for developmental works. After a significant cut of Rs 976 crore was enacted by the Centre last month, only Rs 2100 crore remained. In response, the Lieutenant Governor traveled to New Delhi for discussions with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman to advocate for the restoration of the budget.
The CECs-cum-Chairpersons from the two Hill Councils, which faced a Rs 110 crore loss each, also engaged with the ministries on this matter. Additional stakeholders contributed to the dialogue, leading the Finance Ministry to agree to consider restoring the funds.
Nonetheless, officials noted that it remains to be seen whether the entire Rs 976 crore will be fully restored or if a slight cut will still apply, pending the receipt of a formal communication from the Finance Ministry.
With over three months remaining in the financial year, both the UT administration and Hill Council representatives are optimistic that the restoration of the budget cuts will facilitate new developmental projects. Typically, excess budget funds are surrendered annually around January when the actual spending is clearer. However, this year, the excess was calculated in October, leading to an unexpected Rs 976 crore cut for Ladakh.
Of the total Rs 976 crore cut, the Leh and Kargil Autonomous Hill Development Councils each lost Rs 110 crore, amounting to a total impact of Rs 220 crore—significant funding for these councils intended for developmental activities. Given Ladakh’s status as a small UT, such a substantial budget cut was particularly severe, risking long-awaited developmental initiatives.
Ladakh previously was part of the erstwhile state of Jammu and Kashmir and served as its third division, alongside Jammu and Kashmir. However, after the abrogation of the special status on August 5, 2019, the Central Government designated Ladakh as a Union Territory without a legislature.
