Chairpersons raising concerns over Central allocations
*Budget cuts from Rs 344 cr to Rs 272 cr expected
Sanjeev Pargal
JAMMU, Feb 9: A potential financial crisis looms as both Ladakh Autonomous Hill Development Councils (LAHDCs) of Leh and Kargil face an approximate cut of Rs 72 crore each in their annual budget for the upcoming financial year 2025-26. This comes in light of an overall reduction of Rs 1266 crore in Central grants allocated to the Union Territory, prompting the Chairpersons of both councils to raise their concerns with Central representatives and the UT administration.
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As informed by sources to the Excelsior, the annual budget for each of the Leh and Kargil Autonomous Hill Development Councils, which was previously set at Rs 344 crore for the current financial year of 2024-25, is being slashed to Rs 272 crore each, significantly impacting the development initiatives carried out in their respective districts.
This reduction translates to a Rs 72 crore cut for both Leh and Kargil Hill Development Councils. The BJP has been in control of the Leh Hill Development Council for the second consecutive term, with elections for this autonomous body—comprising 26 seats plus four nominated Councilors—slated for September-October this year. The Kargil Council is currently managed by the National Conference.
Tashi Gyalson, Chairman-cum-CEC of LAHDC Leh, expressed to the Excelsior via telephone that the proposed cuts in grants were unacceptable, as they would adversely affect the district’s developmental activities. He is drafting a letter to Finance Minister Nirmala Sitharaman, advocating for an increase in Central grants that resulted in the budget cuts for the Hill Councils.
“We will also request meetings with Central representatives to apprise them of the situation. The cut is unjustified considering the Council’s 96 percent expenditure rate. If spending were lower, the Finance Ministry could reassess the budget in October, but this budget cut will hinder developmental progress,” stated Gyalson, a senior BJP leader from Ladakh.
LAHDC Kargil Chairman-cum-CEC Mohammad Zaffar Akhoon echoed similar sentiments, stating that the Council’s budget should have seen at least a 15 percent increase, given inflation rates. Instead, he lamented, the UT administration is reducing the budget by roughly Rs 72 crore.
“We will raise this issue at all available forums, including the High Powered Committee (HPC) established by the Central Government to address Ladakh matters. We intend to discuss the matter with both the Finance Ministry and the UT administration, as there should be no reduction in the budget under any circumstances,” Akhoon, representing the National Conference, remarked, adding that the current year’s expenditure of 98-99 percent leaves no justification for cuts.
Officials noted that the annual budget cuts for the Hill Councils were a result of the Union Finance Ministry’s decision to decrease Central grants for the Union Territory of Ladakh for 2025-26 by Rs 1266 crore compared to the current fiscal year.
Ladakh received Rs 5958 crore in grants for 2024-25, which has now been reduced to Rs 4692.15 crore for 2025-26 as per the budget presented by Nirmala Sitharaman in the Parliament on February 1.
The BJP, in particular, may find itself in a difficult position since the Rs 72 crore cut to the Leh Council’s budget could impede development as elections approach in the next few months. Elections for the Council are due in September-October this year.
The BJP attained a two-thirds majority in the 2015 elections following Narendra Modi’s election to power at the Center. In 2020, while the BJP’s representation diminished, they still managed to retain majority control of the Council.
The Council comprises 26 elected seats, with four Councilors nominated by the UT administration who also possess voting rights.
