Jammu, Dec 19: The Union Finance Ministry is set to restore over Rs 400 crore in budgetary cuts for Ladakh’s 2025-26 allocations, enabling the UT administration to acquire land for key projects and settle pending liabilities, with funds expected to be released soon.
Official sources said Lieutenant Governor Kavinder Gupta raised the issue in meetings with Finance Minister Nirmala Sitharaman in New Delhi, prompting the Centre’s agreement to reinstate the slashed amount after the UT struggled with project delays due to funding shortfalls.
The restoration will support timely completion of developmental works despite Ladakh’s harsh winter limiting the working season from December to March, while an additional Rs 148.64 crore has been allocated to the Leh and Kargil Autonomous Hill Development Councils.
The 2025-26 budget had reduced Ladakh’s central grants to Rs 4,692.15 crore from Rs 5,958 crore in 2024-25 — a Rs 1,266 crore cut — with Rs 2,450 crore for revenue and Rs 2,242.15 crore for capital expenditure, impacting most departments.
This comes days after Parliament approved Rs 2,504.46 crore as additional funds for Ladakh to transfer liabilities to Jammu & Kashmir, plus Rs 20.14 crore for the Jammu High Court complex, as the Centre pushes infrastructure like strategic roads and the Shyok tunnel inaugurated by Defence Minister Rajnath Singh.
Government sources emphasized no funding shortages for ongoing or new projects, with multiple agencies accelerating works to boost defence and civilian connectivity in the region.
