Ladakh Faces Rs 1,000 Crore Budget Slash, Developmental Projects at Risk

The Biz Reporter

Leh, Nov 18: In a shocking development, the Union Territory of Ladakh is reeling from a massive budget cut of approximately Rs 1,000 crore, with local leaders scrambling to prevent potential developmental setbacks. The unexpected reduction, including a devastating Rs 110 crore cut for each Autonomous Hill Development Council of Leh and Kargil, has triggered an urgent political response.

Lieutenant Governor Brig (Retd) BD Mishra has swiftly traveled to New Delhi, directly engaging with Union Finance Minister Nirmala Sitharaman to challenge the abrupt budget reduction. Simultaneously, Tashi Gayalson, Chief Executive Councillor of Leh Council, has dispatched critical letters to both Sitharaman and Home Minister Amit Shah, seeking immediate intervention.

Key Concerns Highlighted

Official sources reveal that while annual budget surrenders typically occur in January after comprehensive expenditure assessment, this year’s October cut comes at a critically inopportune moment. The timing is particularly problematic, considering:

• Parliamentary elections earlier this year disrupted the working season
• Model Code of Conduct delayed tendering processes
• Ongoing and upcoming project works remain vulnerable

The budget cut represents a significant blow to Ladakh, a small Union Territory with limited resources. With Rs 220 crore slashed from Hill Development Councils, local leaders warn of potential long-term developmental impediments.

Political Mobilization

In a strategic move, Lt Governor Mishra has requested the Central Government to maintain the current budget allocation. During his meeting with Sitharaman, he emphasized the potential repercussions on ongoing projects and the region’s overall development.

Notably, Mishra also consulted Union Minister Kiren Rijiju regarding minority affairs, demonstrating a multi-pronged approach to addressing the territory’s challenges.

What’s Next?

CEC Tashi Gyalson remains optimistic, expressing confidence in resolving the budget cut through high-level ministerial intervention. The coming weeks will be crucial in determining Ladakh’s developmental trajectory.

As the situation unfolds, all eyes are on the Central Government’s response to this unprecedented budget reduction.