What's behind the Centre's big love for Ladakh in Union Budget 2024?

The government's increased budget allocations for Ladakh and additional allocations for various central expenditures have focused on the overall development of the region over the years

Union Finance Minister Nirmala Sitharaman on Tuesday allocated Rs 5,958 crore to the Union Territory of Ladakh in the Budget 2024-25, marking a significant 32 per cent increase from the previous year’s allocation of Rs 4,500 crore.

The Union Territory of Ladakh, established after the abrogation of Article 370 in 2019 from Jammu and Kashmir, has been granted Rs 2,035.49 crore for the Centre’s establishment expenditure to cover secretariat-related expenses and the creation of various departments and offices.

Additionally, Rs 3,922.51 crore has been allocated for various central sector expenditures in Ladakh, including agriculture and allied schemes, water supply and sanitation, rural development, power, forestry and wildlife, medical and public health, and education, among other sectors.

 

As Ladakh lacks its own legislature, all grants are disbursed by the central government following finalisation by the Ministry of Home Affairs. The Interim Budget for 2024 allocated Rs 5,958 crore to the Union Territory, the same as the previous fiscal. Of this allocation, Rs 2,881.84 crore was designated for revenue expenditure, while Rs 3,076.16 crore was set aside for capital expenditure.

The government’s increased budgetary allocations have significantly focused on infrastructure development in Ladakh over the years. Key areas of development include green energy, telecommunications, road networks, sports, grid transmission lines, and infrastructure for health and education.

Several centrally sponsored initiatives, such as the Pradhan Mantri Gram Sadak Yojana (PMGSY), Central Road and Infrastructure Fund (CRIF), Jal Jeevan Mission (JJM), and Pradhan Mantri Awas Yojana (PMAY), are being closely monitored for their implementation in Ladakh.

On the other hand, Rs 42,277 crore has been allocated to the Union Territory of Jammu and Kashmir, which is currently under the direct control of the central government, Rs 5,985 crore has been given to Andaman and Nicobar Islands, Rs 5,862 crore to Chandigarh, and Rs 5,958 crore to Ladakh among others.

[With agency inputs]