Chairpersons up in arms, to take up issue with Central Reps
*Rs 344 cr allocations may come down to Rs 272 cr
Sanjeev Pargal
JAMMU, Feb 9: In what could be a major financial crisis, Ladakh Autonomous Hill Development Councils (LAHDCs), Leh and Kargil are set to face around Rs 72 crore each cut in annual budget for next financial year of 2025-26 due to reduction in overall Central grants to the Union Territory by Rs 1266 crore prompting both Chairpersons of the councils to take up issue with Central representatives and the UT administration.
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Sources told the Excelsior that annual budget of Leh and Kargil Autonomous Hill Development Councils which was Rs 344 crore each for current financial year of 2024-25 is being reduced to Rs 272 crore each which will seriously impact development works undertaken by the bodies in their districts.
This means a cut of Rs 72 crore each to both Leh and Kargil Hill Development Councils. The BJP is ruling Leh Hill Development Council for second consecutive time and elections to the autonomous body having 26 seats plus four nominated Councilors are due in September-October this year. Kargil Council is being ruled by the National Conference.
Tashi Gyalson, Chairman-cum-CEC of LAHDC Leh told the Excelsior on telephone that cut in the grants is not acceptable to them as it will hit developmental works in the district and he is in the process of writing to Finance Minister Nirmala Sitharaman to ensure enhancement in the Central grants which led to cut in the budget of Hill Councils.
“We will also seek meetings with the Central representatives to brief them on the issue. The cut is unjustified because of 96 percent expenditure by the Council. If spendings are less, the Finance Ministry can review the budget in October but at this stage the budget cut will impact the development works,” Gyalson, a senior BJP leader from Ladakh, said.
Similar were the views of LAHDC Kargil Chairman-cum-CEC Mohammad Zaffar Akhoon who told the Excelsior that there should have been at least 15 percent increase in the Council’s budget taking normal inflation into account. Instead, he regretted, the UT administration is downsizing the budget by around Rs 72 crore.
“We will take the issue at every forum including the High Powered Committee (HPC) set up by the Central Government on Ladakh. We will also take up the matter with the Finance Ministry as well as the UT administration. In no case, there should be reduction in the budget,” Akhoon, who belongs to the National Conference, said, adding current year’s expenditure of 98-99 percent leaves no scope for cut.
As per the officials, cut in annual budget of the Hill Councils was necessitated as the Union Finance Ministry reduced Central grants to the Union Territory of Ladakh for 2025-26 by Rs 1266 crore as compared to current financial year.
Ladakh was given Rs 5958 crore grants for 2024-25 which were reduced to Rs 4692.15 crore for 2025-26 in the budget presented by Nirmala Sitharaman in the Parliament on February 1.
The BJP especially could face major trouble as cut of around Rs 72 crore in the Leh Council’s budget will hit development at a time when the Council is scheduled to go to polls in next few months. Elections to the Council are due in September-October this year.
The BJP won two-third majority in the Council in 2015 elections after Narendra Modi Government came to power at the Centre. In 2020, the BJP seats were reduced but it managed to secure majority in the Council.
The Council has 26 seats for which election is held while the UT administration nominates four Councilors with voting rights.
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