‘Nothing short of a betrayal, Ladakh deserves fair share’
LEH: The Central grants to Union Territory of Ladakh for 2025-26, have gone down by Rs 1266 crores as compared to budgetary proposals of current financial year of 2024-25 and Rs 228 crore from revised estimates.
As per the figures in the budget tabled in Parliament on Saturday by Finance Minister Nirmala Sitharaman, Ladakh will get Central grants of Rs 4692.15 crore for the financial year of 2025-26 which are less by Rs 1266 crore from 2024-25 when the UT was given Rs 5958 worth grants.
The grants are even down by Rs 228 crore from revised estimates of 2024-25 which were pegged at Rs 4920.34 crore.
In 2023-24, Ladakh was given Rs 4300.29 crore worth Central grants. Out of Rs 4692.15 crore worth grants given to the UT of Ladakh, Rs 2450 crore are for revenue expenditure and Rs 2242.15 crore for capital expenditure, the budget documents revealed.
The Central Government had in December imposed a cut of around Rs 1100 crore in Ladakh budget leading to uproar by various political parties.
Lieutenant Governor of Ladakh Brig (Retd) BD Mishra had met Finance Minister Nirmala Sitharaman on the issue. Chairpersons of both Leh and Kargil Hill Development Councils also met New Delhi representatives. Later, budget worth over Rs 500 crore was restored.
In view of reduction in overall grants of Ladakh Union Territory, the department-wise grants in most of the cases have also gone down.
Ladakh was third division of erstwhile State of Jammu and Kashmir till August 5, 2019 when the Central Government abrogated special status of J&K and divided it into two Union Territories of J&K and Ladakh.
Ladakh has been allocated Rs 4 crore for 2025-26, an amount which is equal to what the UT got in 2024-25 for payment of subsidy for operating helicopter services in Ladakh.
The budget referred to a scheme for Industrial Development of Ladakh, 2022 saying the new Central Sector Scheme for industrial development of the UT of Ladakh shall be from 2023-24 with total outlay of Rs 3500 crore.
The scheme has incentives like Capital Investment, Capital Interest Subvention, Goods and Services Tax Linked Incentive and Working Capital Interest Subvention.
Reaction from representatives of Ladakh on reduction of the Central grants was not available immediately.
The Leh Apex Body (LAB) and Kargil Democratic Alliance (KDA) besides other representatives have been engaged in dialogue with the Union Ministry of Home Affairs on four-point agenda including Statehood, Sixth Schedule, two Parliamentary seats and dedicated Public Services Commission (PSC) for Ladakh.
Their last meeting was held in New Delhi on January 15 and the next meeting is scheduled for February 15.
Reacting to the Budget allocation, one of the political activists from Ladakh, Sajjad Kargili in a message said, “The government reduced Ladakh’s allocation in the Union Budget from ₹5,958 Cr to a mere ₹4,692 Cr is nothing short of a betrayal. A staggering ₹1,266 Cr has been slashed, leaving the people of Ladakh to bear the brunt of this unjust cut.”
He said that since the imposition of Union Territory status, Ladakh has been grappling with unmet promises and unaddressed challenges. The reduction in funds is not just a number—it’s a direct blow to the region’s development, infrastructure, and the livelihoods of its people.
What’s even more unfortunate is the silence from our elected representatives. The people of Ladakh deserve answers, not apathy.
This budget is a stark reminder of how marginalized regions continue to be overlooked. It’s time to demand better. Ladakh deserves its fair share, he added.
