The Ladakh MP, Mohammad Haneefa Jan ,on Monday expressed concern on cutting by Rs. 976 crores Ladakh’s revised budget allocation for the capital component for the current financial year 2024-2025 that might slow down the region’s progress.

He has urged Prime Minister Narendra Modi and other Central leaders for a strategic reassessment of the reduced allocations so as to sustain and accelerate the developmental goals in Ladakh. It is imperative to enhance capital grants, reversing the declining trend witnessed over recent years and to keep the commitment of Rs.5958 crore budget allocation made to UT of Ladakh.

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He said Ladakh has witnessed a significant transformation since becoming a Union Territory (UT) in 2019, with the Central government consistently prioritizing its development. Over the last five years, critical attention has been given to overcoming infrastructural challenges in all fields.

However, the Office Memorandum (OM) issued by the Administration of the UT of Ladakh dated 13 November, raises grave concerns with stagnation and reductions in the state sector. Based on the said OM of the UT Administration, the revised budget allocation for the capital component of Ladakh in 2024-25 is significantly reduced compared to the original budget estimate, from Rs.3076.16 crore to Rs. 2100 crore. This represents a reduction of 976.16 crore, which affects multiple sectors, including the State Sector, SDP (Special Development Package), and the Ladakh Autonomous Hill Development Councils (LAHDCs) of Leh and Kargil.

“Therefore, I strongly condemn the government for unwarranted & unjustified enormous reduction in the Revised Estimate 2024-25 and the Budget Estimate 2025-26”, the MP added.

On one hand, the government promises to bring development to the doorstep by creating new districts. However, the OM of the UT Administration presents a contrasting picture, indicating a reduction in the budget by nearly Rs.1000 crore. This is concerning, especially considering that Ladakh has consistently utilized its allocated budget efficiently across various sectors in the past, especially under District CAPEX under the LAHDC’s, he pointed out.

The decrease in capital expenditure is particularly alarming, as capital investments are crucial for long-term infrastructure projects, including roads, bridges, canals, drinking water infrastructures, renewable energy, power sector, health, education and telecommunications etc.

“A stagnation or reduction in budget allocation risks slowing down overall progress. jeopardizing the region’s development trajectory. Various executing agencies have been working day and night in the development of Ladakh’s infrastructural goals but such reductions in budgets will only lead to increased frustrations among them. Further it is pertinent to mention here that the working season in Ladakh is from April to November only and all bills are raised in the month of December-January. Now was the time for the agencies working under various sectors to reap their hard work but reduction in the Revised Estimate Budget 2024-25 has only left them frustrated. Most of the contractors working across various sectors in Ladakh work by taking bank loans with the hope of clearing the same at the end of the working season but this year’s drastic reduction in RE will lead to serious consequences among the contractor fraternity”, he said.