New Delhi, Dec 3: The Ministry of Home Affairs (MHA) has ensured enhanced financial transparency and accountability in the Union Territory of Ladakh while retaining full powers with the Lieutenant Governor (LG), official sources from MHA said on Tuesday.
Under the new framework, Administrative Approval (AA) and Expenditure Sanction (ES) for major projects will be processed through the MHA, aligning Ladakh with other Union Territories without affecting the LG’s authority as the Competent Financial Authority.
“All decision-making powers, delegated financial authority and contract approvals remain fully with the LG,” the sources told.
The LG continues to approve contracts up to Rs 100 crore, while contracts above Rs 40 crore and up to Rs 100 crore are cleared by the Contract Committee, consistent with existing norms.
Officials highlighted that the administration has completed development works worth over Rs 11,562 crore in the past five years with more than 5,500 projects ongoing across the UT. “The financial and administrative system is fully functional, and day-to-day governance continues seamlessly,” MHA sources said.
Ladakh’s administration operates through e-office mode, ensuring that all procedural approvals are processed efficiently, enhancing accountability and reducing delays.
The LG retains unrestricted powers over contingent and miscellaneous expenditures within the approved budget under General Financial Rules.
The sources said that this step strengthens governance rather than curtails authority. “It allows quicker clearance for high-value projects, ensures uniform standards and improves coordination for strategic border-region development. The change is supportive, not interference,” they said.
Strategic priorities, including infrastructure, border connectivity, tourism, renewable energy, and rural development, remain under full administrative control of the UT.
Officials reiterated that the measure is an administrative reform to improve transparency and efficiency while maintaining the LG’s powers intact.
