Leh, Feb 03: Member of Parliament from Ladakh, Mohmad Haneefa, on Monday voiced strong concern over the continued fall in Budget allocations for the Union Territory, warning that Ladakh is being left financially constrained despite expanding administrative and developmental responsibilities following its formation as a Union Territory.
In a press statement issued from New Delhi, Haneefa said the Union Budget 2026–27 once again reflects a downward trend in financial support to Ladakh, even as the region’s infrastructure, public services and governance needs continue to grow.
According to the statement, Ladakh was initially provided a strong budgetary framework, with allocations crossing ₹6,000 crore when the Union Territory was constituted. However, the MP pointed out that the overall allocation has steadily fallen over the last two financial years.
While Ladakh received ₹5,958 crore in 2024–25, the allocation for 2026–27 has been fixed at ₹4,869 crore. This is even lower than the Revised Estimates of ₹7,377 crore for 2025–26. Haneefa said the trend reflects stagnation and, in real terms, a reduction in committed resources at a time when developmental needs are increasing.
The MP underlined that Ladakh requires sustained and higher capital expenditure for infrastructure, connectivity, health, education and public services. He stated that the present Budget does not reflect this requirement and that capital spending has largely remained stagnant, with no visible push for long-term infrastructure creation.
He also pointed out that there is no dedicated allocation for infrastructure development in the newly proposed districts, which, according to him, is necessary to ensure decentralisation and responsive governance.
While acknowledging the efforts of the UT Administration and the Ladakh Autonomous Hill Development Councils, Haneefa said both councils have shown strong fiscal discipline and administrative capacity. He noted that fund utilisation has consistently crossed 90 per cent, indicating Ladakh’s ability to absorb higher allocations and translate them into development outcomes.
However, he added that although some funds were restored in the previous year, the overall increase was not in line with Ladakh’s expenditure capacity and development momentum.
Raising concerns about the structure of the Budget, the MP said there is an absence of sector-specific interventions for the Ladakh economy. He pointed out that there is no dedicated provision for the promotion of winter sports, despite Ladakh’s potential to emerge as a centre for winter tourism and adventure sports, which could also generate employment for local youth.
He further stated that agriculture and allied sectors, which continue to form the backbone of Ladakh’s rural economy, have not received focused attention. The press note said Ladakh is facing increasing agricultural distress due to drought-like conditions, water scarcity and the growing impact of climate change, yet the Budget does not announce any targeted package or projects to address these issues.
Haneefa welcomed the proposal to develop Leh Palace as a cultural destination and described it as a positive step towards preserving Ladakh’s heritage and promoting cultural tourism. At the same time, he cautioned that isolated announcements cannot replace a comprehensive and integrated development vision for the Union Territory.
He also stressed that several historical and cultural sites in both Kargil and Leh require equal attention.
A major concern highlighted in the statement relates to the absence of institutionalised representation of Ladakhi voices in the process of budget formulation. The MP said there is no structured consultation with Ladakh’s elected representatives and local stakeholders while preparing the Union Budget.
As a result, he said, many critical development priorities of the region continue to be overlooked year after year. The situation, he said, reinforces Ladakh’s long-standing demand for full statehood with a legislature so that the people of the region can formally deliberate on their needs and convey their priorities to the Union Government through an accountable democratic framework.
Haneefa said he intends to take up Ladakh’s financial and developmental requirements directly with the Union Home Minister and the Union Finance Minister. He expressed hope that, through constructive dialogue, the government would consider enhancing Ladakh’s budgetary allocation in line with its utilisation capacity, strategic importance and long-term development needs.
He also reaffirmed his commitment to working with the Union Government to ensure that Ladakh receives the attention, investment and institutional empowerment required for sustainable and inclusive development.
