New Delhi, February 2, 2026 – In a detailed press release issued today, Mohmad Haneefa, Member of Parliament from Ladakh, voiced significant concerns regarding the Union Budget 2026-27, highlighting its shortcomings in addressing the developmental needs of the Union Territory. While acknowledging some positive steps, Haneefa emphasized the need for enhanced funding and strategic interventions to foster sustainable growth in Ladakh.

Haneefa noted that since Ladakh was constituted as a Union Territory, it has benefited from a robust budgetary framework, with allocations exceeding ₹6,000 crore annually. However, he pointed out a concerning trend of gradual decline in funding over the past two financial years. The total allocation for Ladakh in 2024-25 stood at ₹5,958 crore, while the 2026-27 budget has been pegged at only ₹4,869 crore—a figure significantly lower than the Revised Estimates for 2025-26, which amounted to ₹7,377 crore. This reduction, according to the MP, signals stagnation and a cutback in committed resources amid rising developmental demands.

As a newly formed Union Territory, Ladakh requires sustained and enhanced capital expenditure on infrastructure, connectivity, health, education, and public services, Haneefa stated. He criticized the budget for failing to adequately reflect these priorities, with capital expenditure remaining largely stagnant and lacking a major push for long-term infrastructure creation. Notably, there is no dedicated allocation for development in the proposed new districts, which he described as essential for effective decentralization and responsive governance.

The MP commended the efforts of the UT Administration and the Ladakh Autonomous Hill Development Councils (LAHDCs), which have demonstrated strong fiscal discipline and administrative capacity. Both councils have consistently achieved fund utilization rates exceeding 90 percent, proving Ladakh’s ability to efficiently absorb higher allocations and translate them into tangible outcomes. While some funds were restored in the previous year, Haneefa argued that the overall increase has not been commensurate with the region’s expenditure capacity and developmental momentum.

Haneefa also highlighted the absence of sector-specific interventions crucial to Ladakh’s unique economy. He expressed disappointment over the lack of dedicated provisions for promoting winter tourism and adventure sports, despite the region’s immense potential to emerge as a global hub in these areas. Such initiatives, he noted, could generate significant employment opportunities for local youth. Similarly, agriculture and allied sectors—the backbone of Ladakh’s rural economy—have not received focused attention. The region is grappling with increasing agricultural distress due to drought-like conditions, water scarcity, and the growing impacts of climate change, yet the budget does not include targeted packages or projects to address these challenges.
On a positive note, Haneefa welcomed the proposal to develop Leh Palace as a cultural destination, viewing it as a step toward preserving Ladakh’s rich heritage and boosting tourism. However, he cautioned that isolated announcements cannot replace a comprehensive and integrated development vision for the Union Territory. He called for equal attention to other historical sites in Kargil and Leh to ensure balanced growth.

A key concern raised in the press release is the lack of institutionalized representation for Ladakhi voices in the budget formulation process. There is no structured consultation with elected representatives and local stakeholders, which Haneefa said reinforces the long-standing demand for full statehood with a legislature. This would enable the people of Ladakh to meaningfully deliberate on their needs and formally convey priorities to the Union Government through an accountable democratic framework.

Looking ahead, Haneefa announced his intention to directly engage with the Hon’ble Union Home Minister and the Finance Minister to advocate for Ladakh’s financial and developmental requirements. He expressed hope that through constructive dialogue, the Government will enhance budgetary allocations in line with the region’s utilization capacity, strategic importance, and long-term needs.”I remain committed to working collaboratively with the Union Government to ensure that Ladakh receives the attention, investment, and institutional empowerment necessary for sustainable, inclusive, and future-ready development,” Haneefa concluded.