Ladakh’s budget allocation reduced by Rs 976 crore, claims MP Hanifa Jan
Even as a tussle continues between Ladakh activists and the Union government over the issue of Sixth Schedule and other demands, Member of Parliament Haji Hanifa Jan has dropped a bombshell by claiming that the budget allocation to Ladakh has been reduced by about Rs 976 crore this year.
The MP has expressed concern over the decreased funding under revised estimate 2024-25 and budget estimate 2025-26 for the capital component of Ladakh.
“Ladakh has witnessed a significant transformation since becoming a Union Territory in 2019, with the Central government consistently prioritising its development. Over the last five years, critical attention has been given to overcoming infrastructural challenges in all fields,” Hanifa Jan said in a statement.
“However, the Office Memorandum (OM) issued by the Ladakh administration on November 13th raises grave concerns with stagnation and reductions in state sector, Special Development Package (SDPs) and critical funding components of both the LAHDCs (hill councils), which merit urgent reconsideration by the Govt of India and UT administration,” he said.
Matter of concern
This is a matter of concern, especially considering that Ladakh has consistently utilised its allocated budget efficiently across various sectors in the past, especially under District CAPEX under the LAHDCs.
— Haji Hanifa Jan, Ladakh MP
The MP has claimed that based on the said Office Memorandum, the revised budget allocation for the capital component of Ladakh in 2024-25 is significantly reduced compared to the original budget estimate—from Rs 3,076.16 crore to Rs 2,100 crore. “This represents a reduction of 976.16 crore, which affects multiple sectors, including State Sector, SDP and the Ladakh Autonomous Hill Development Councils (LAHDCs) of Leh and Kargil,” he said.
The MP said that on one hand the government promises to bring development to the doorstep by creating new districts but on the other, the OM presents a contrasting picture, indicating a reduction in the budget by nearly Rs 1,000 crore. “This is a matter of concern, especially considering that Ladakh has consistently utilised its allocated budget efficiently across various sectors in the past, especially under District CAPEX under the LAHDCs,” he stated.
The MP stated that the decrease in capital expenditure is particularly alarming as capital investments are crucial for long-term infrastructure projects, including roads, bridges, canals, drinking water infrastructures, renewable energy, power sector, health, education and telecommunications.
He warned that the stagnation or reduction in budget allocation risks slowing down overall progress and jeopardizing the region’s development trajectory. “The various executing agencies have been working day and night in the development of Ladakh’s infrastructural goals but such reductions in budgets will only lead to increased frustrations among them. Further, it is pertinent to mention here that the working season in Ladakh is from April to November only and all billings are raised in the month of December- January.”
The MP has also urged the Prime Minister, Union Home Minister and Finance Minister to address the issue.
