Budget was cut due to reduction in grants
*Decision likely during Parl’s Monsoon session
Sanjeev Pargal
JAMMU, June 19: In a good news for twin Hill Councils of Leh and Kargil in the Union Territory of Ladakh, the Finance Ministry is expected to restore their budgetary cut of around Rs 90 crore each in the Capital expenditure shortly.
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The decision is expected to be taken during or after Monsoon session of the Parliament scheduled to be held in July-August, official sources told the Excelsior.
Finance Minister Nirmala Sitharaman was in Leh for four days recently during which the Chairpersons and other members of Ladakh Autonomous Hill Development Councils (LAHDCs), Leh and Kargil met her and strongly requested for restoration of budgetary cuts to the Councils.
She had assured the Chairpersons-Tashi Namgayal, Leh and Dr Zaffar Akhoon, Kargil that their demands would be considered.
While a decision on total budgetary cut of Rs 1266 crore for the Union Territory of Ladakh couldn’t be ascertained immediately, sources said it is almost clear that the twin Autonomous Hill Development Councils are going to get around Rs 90 crore each, which were cut in the budget, back for Capital expenditure.
“A decision is required to be taken at the earliest as entire Union Territory of Ladakh has very limited working season because of extreme harsh weather conditions during winter. Indications are that the budgetary cut may be restored during Monsoon session of Parliament which is scheduled to be held from July 21 to August 12,” the sources said.
In budgetary grant of Ladakh for the year 2025-26, the Finance Ministry had reduced the funding of the UT of Ladakh by Rs 1266 crore in total. In view of this, the UT Ladakh administration reduced budget of both the Hill Councils by around Rs 90 crore.
This has resulted into resentment among the Councilors who felt that reduction in Capital expenditure budget will hit development in Ladakh.
As soon as the budgetary cuts were announced in the budget in February, Lieutenant Governor of Ladakh Brig (Retd) BD Mishra took up the issue with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman. The Chairpersons of Hill Councils and the BJP leaders later also met the Finance Minister and other representatives of the Central Government seeking restoration of cut in the budget.
Elections to Leh Autonomous Hill Development Council are due in September-October this year. The Leh Council is being ruled by the BJP for last two consecutive terms. However, the National Conference is in power in Kargil Hill Development Councils.
Sources expressed confidence that even if the Leh and Kargil Hill Councils get back their budget by July-August, this will give them an ample time to initiate developmental works before onset of the winter.
During her four days visit to Ladakh, the Finance Minister assured that the Central Government is committed to infrastructure development and tourism promotion in the Union Territory.
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