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Facing a sharp decline in tourist arrivals following the April 22 terror attack in Pahalgam, multiple delegations from Ladakh—comprising tourism stakeholders and local representatives—met Union Finance Minister Nirmala Sitharaman during her ongoing visit to Leh and appealed for special relief measures to support the tourism and allied sectors. An official confirmed the discussions on Sunday.

The delegations also urged the Finance Minister to restore Ladakh’s budget allocations for the financial year 2025-26 and proposed that Budget Estimates (BE) and Revised Estimates (RE) be determined based on actual expenditures up to December, rather than September or October. They argued this would better reflect the region’s fiscal realities, given Ladakh’s limited working season due to its harsh climate and geography.

 

 

Sitharaman arrived in Leh on Saturday for a four-day official visit. On her first day, she attended the light and sound show at Leh Palace and visited the Shanti Stupa. She also engaged with various delegations led by the Chairman-cum-Chief Executive Councillor of the Ladakh Autonomous Hill Development Council (LAHDC), Leh, Tashi Gyalson. These delegations included members from key local bodies such as the All Ladakh Travel and Trade Alliance (ALTA), All Ladakh Hotel and Guest House Association (ALGHA), All Ladakh Tour Operators Association (ALTOA), All Ladakh Transport Association (ALTA), Merchant Associations, Biker Associations, Taxi Unions, and other tourism-related groups.

 

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A memorandum submitted by Gyalson on behalf of LAHDC, Leh, specifically requested a comprehensive relief package for the ailing tourism sector. This included demands for the rescheduling of existing bank loans, extension of loan moratoriums, and official recognition of tourism as a "distressed sector". The memorandum reiterated the need for restoring Ladakh's full budget for FY 2025-26 and emphasized revising the practice of limiting fiscal estimates to September-October, suggesting that December would offer a more accurate picture of expenditure capacity, especially given the region’s shortened working window.

The delegation also acknowledged the Centre’s sustained support to Ladakh, expressing gratitude for various centrally sponsored schemes and allocations. They especially highlighted the positive role of the Vibrant Villages Programme, which has significantly contributed to the development of remote border areas in the Union Territory. Among other key demands, the delegation requested enhancement of financial powers for the Chief Executive Officer (CEO) and Deputy Commissioner of Leh, allowing them to approve administrative sanctions up to ₹10 crore, aligning their authority with that of chief engineers.

 

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They also sought the Finance Ministry’s assistance in expediting the division of assets and staffing of the Jammu & Kashmir Grameen Bank between Jammu & Kashmir and Ladakh. In line with this, they proposed the creation of a dedicated Regional Rural Bank (RRB) for Ladakh to promote financial inclusion. Additionally, the delegation proposed setting up a Ladakh Development Finance Corporation (LDFC) to support region-specific industries and called for establishing a Reserve Bank of India (RBI) office in Leh to enhance banking oversight, address local grievances, and promote financial literacy across the region.

The discussions took place amid mounting concerns over a noticeable decline in tourist footfall after the April 22 terror incident in Pahalgam, which resulted in the death of 26 people. This tragedy, while geographically distant, has had a significant impact on Ladakh’s tourism sector. Another delegation comprising elected councillors also met the Finance Minister and submitted a separate memorandum that highlighted major financial and developmental priorities for the region. A prominent request was the restoration of Ladakh’s budgetary allocation for FY 2025-26 to ensure that critical developmental projects can proceed without disruption.

In response, Finance Minister Nirmala Sitharaman assured the delegations that their concerns and proposals would be thoroughly examined and considered for appropriate action.

 

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