The budgetary cuts imposed on the Union Territory of Ladakh, including the twin Hill Development Councils of Leh and Kargil, are likely to be restored in the Finance Ministry’s Revised Estimates. Sources told Excelsior that the UT administration, along with the Chairpersons-cum-CECs of both Hill Councils, has repeatedly raised the issue with the Union Ministries of Finance and Home. In recent days, the matter has reportedly moved in a positive direction.
“There are strong indications that the budgetary cuts will be restored—either fully or close to the full amount—when the Revised Estimates are prepared by the Union Finance Ministry,” sources said, adding that there is near consensus between the Finance and Home Ministries on the matter.
However, officials confirmed that the expenditures of both the UT administration and the Hill Councils will be reviewed before a final decision is taken.
Chairman-cum-CEC of the Leh Hill Council, Tashi Gyalson, is currently in New Delhi meeting central leaders. On Thursday, he met Union Minister for Road, Transport and Highways Nitin Gadkari and is expected to meet more ministers. Lieutenant Governor of Ladakh, Kavinder Gupta, had also taken up the issue of restoring budgetary allocations during his meetings with Prime Minister Narendra Modi and Union Home Minister Amit Shah last week, where he received assurances that the cuts would be reversed.
Elections to the Leh Autonomous Hill Development Council are scheduled for October this year—unless the anticipated creation of five new districts takes place before the announcement of polls, which could delay the elections. Three of these districts are to be carved out of Leh, and two from Kargil. At present, Ladakh has only two districts: Leh and Kargil. The Ministry of Home Affairs had announced the formation of the five new districts in August last year, and all formalities for their creation have been completed.
In the 2025–26 budget, the Finance Ministry had reduced Ladakh’s allocation by ₹1,266 crore. As a result, the UT administration cut the budgets of both Hill Councils by around ₹90 crore each, prompting resentment among councillors who warned that reduced capital expenditure would affect Ladakh’s development.
Following the announcement of the cuts in February, the UT administration immediately approached Home Minister Amit Shah and Finance Minister Nirmala Sitharaman. Hill Council chairpersons and BJP leaders also met the Finance Minister and other central representatives to seek restoration of the funds.
The Leh Council is ruled by the BJP for the second consecutive term, while the National Conference governs the Kargil Hill Council. During her visit to Ladakh in June, Finance Minister Sitharaman assured that the Centre remains committed to infrastructure development and tourism promotion in the UT.
Meanwhile, CEC Tashi Gyalson, along with Deputy Chairman Tsering Angchuk and councillors Rigzin Lundup and Tsering Sangdup, met Minister Nitin Gadkari in New Delhi last evening. They raised the issue of the Shatse Taknak bridge, emphasising that the Disket-Burma bridge over the Shayok River at Shatse is a key priority in the UT administration’s supplementary list and for the Hill Council. They sought the minister’s intervention for its inclusion in the CRIF supplementary list.
Other road and bridge infrastructure projects in Leh district were also discussed. The delegation thanked the minister for his continued support and for allocating ₹931 crore under CRIF for the current financial year. (Sources)
