Centre reduces Ladakh’s grants from Rs 7377 cr to Rs 4869 cr for next FY

Leh Palace to be developed as archaeological site
Excelsior Correspondent
JAMMU, Feb 1: The Centre has allocated more than Rs 4,869 crore to the Union territory of Ladakh in the Union Budget 2026-27, a drop of around 33 per cent compared to the Revised Estimates of Rs 7,377.43 crore for the current fiscal.
The Union Territory, which came into existence after the bifurcation of Jammu and Kashmir in 2019, post the abrogation of Article 370, received Rs 4,692.15 crore in the Budget Estimates for 2025-26.
This was revised to Rs 7,377.43 crore, which included Rs 5,029 crore under revenue and Rs 2,347.73 crore in capital expenses, the budget document said.
In the budget presented by Finance Minister Nirmala Sitharaman in Parliament today, Rs 4,869.31 crore have been allocated to Ladakh, with Rs 2,542.26 crore as revenue expenditure and Rs 2327.05 crore for capital.
The budget also proposed development of a total of 15 archaeological sites in the country including Leh Palace in the Union Territory of Ladakh.

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The budget proposed development of 15 archaeological sites including Lothal, Dholavira, Rakhigarhi, Adhichanallur, Sarnath, Hastinapur and Leh Palace into vibrant, experimental cultural destinations.
Ladakh has been allocated Rs 135.18 crore for Power and Rs 40.02 crore for Rural Development besides Rs 9.8 crore for Water Supply and Sanitation. It has been given Rs 33.05 crore for Civil Supplies.
Rs 68.44 crore have been allocated for Social Welfare, Rs 24.05 crores for Education, Sports, Arts and Culture and Rs 9 crore for Medical and Public health.
Ladakh has two Autonomous Hill Development Councils—Leh and Kargil. However, Leh Hill Council ceased to exist in October last year due to delay in elections after completion of its five-year term.
The administration has given powers of the LAHDC Leh to the Deputy Commissioner Leh.
However, Ladakh Lieutenant Governor Kavinder Gupta, said the Centre increased the allocation from last year’s Budget Estimates, maintaining its focus on the development of the Union Territory.
“We welcome the Budget presented by Nirmala Sitharaman. The proposed allocation of Rs 4,869.31 crore for Ladakh marks an increase from the previous year’s allocation,” Gupta said.