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The Union Budget 2026-27 has allocated INR 4,869.31 crore to the Union territory of Ladakh, marking a decline of about 33% from the revised estimates of the current fiscal but a modest increase over last year's budgeted outlay. The allocation includes INR 2,542.26 crore for revenue expenditure and INR 2,327.05 crore for capital spending. While the revised estimates for 2025-26 had risen sharply due to higher spending needs, Ladakh's administration said the latest allocation reflects the Centre's continued focus on infrastructure development, public services and socio-economic growth. The Budget also places emphasis on heritage-led tourism, including plans to develop the Leh Palace as a cultural destination aimed at supporting sustainable tourism and local livelihoods.
The Centre has allocated INR 4,869.31 crore to the Union territory of Ladakh in the Union Budget 2026-27, reflecting a decline of around 33% from the revised estimates of INR 7,377.43 crore for the current financial year. However, the allocation represents an increase over the Budget Estimates of INR 4,692.15 crore provided for 2025-26.
According to Budget documents, the revised estimates for the ongoing fiscal were significantly higher due to additional spending requirements, with INR 5,029 crore earmarked for revenue expenditure and INR 2,347.73 crore for capital outlay. In comparison, the allocation for FY27 includes INR 2,542.26 crore towards revenue expenditure and INR 2,327.05 crore for capital expenditure, indicating a continued emphasis on asset creation alongside operational spending.
Ladakh, which became a Union territory in 2019 following the bifurcation of Jammu and Kashmir after the abrogation of Article 370, remains heavily reliant on central assistance for infrastructure development, public services and economic growth. Despite the reduction from the revised estimates, the administration said the latest allocation underscores the Centre's ongoing commitment to the region's development.
The Lieutenant Governor of Ladakh said the allocation for FY27 was higher than the previous year's Budget Estimates and demonstrated the Centre's focus on strengthening infrastructure, improving service delivery and accelerating socio-economic progress. He added that sustained central support was critical for addressing Ladakh's unique geographical and developmental challenges.
The Budget's emphasis on heritage and cultural tourism was also welcomed by the administration. In particular, the proposal to develop the Leh Palace as a vibrant and experiential cultural destination was seen as a step towards preserving Ladakh's cultural heritage while promoting sustainable tourism. Officials said such initiatives could generate livelihood opportunities for local communities and support the region's tourism-driven economy.
The Lieutenant Governor expressed confidence that the provisions made in the Union Budget would further support Ladakh's path towards inclusive development. He also acknowledged the continued backing of the central government, stating that targeted investments in infrastructure, tourism and public services would play a key role in strengthening the Union territory's long-term growth trajectory.
Source - PTI
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