The Union Finance Ministry restored financial authority to the Ladakh Lieutenant Governor on Friday, officials said.
The move has delegated authority for appraisal and approval of projects up to Rs 100 crore to the administrators and Lieutenant Governors of the Union territories of Andaman and Nicobar, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep, and Ladakh.
The powers for Lieutenant Governors and administrators have been approved under the delegation of financial powers rules (DFPRs), 2024, according to an official communique.
The latest modifications by the ministry stipulate that these powers must be exercised by the LG/administrators after consultations with the respective UT’S secretary (Finance) or Financial Advisor, and only when adequate budgetary provisions are available. The ministry’s directive adds that the powers extended to the LGs cannot be redelegated.
It also directs that details of all the proposals sanctioned under these powers must be submitted quarterly to the Department of Expenditure through the Ministry of Home Affairs by the end of July, October, January, and April.
According to the notification, the powers of Administrators and LGs to sanction expenditure, from in-principle approval to final approval, including appraisal, will continue under Rule 16 of DFPRs, 2024, but only after schemes are appraised and approved by the competent authorities.
While the move is aimed at ensuring hassle-free and transparent development works, the requirement for the administration to submit details and then await approval from the concerned officials may prove time-consuming.
However, the ministry intends to prevent corruption, even if it means keeping the files in a loop, resulting in necessary delays in the project approvals.
The decision is significant in Ladakh’s context, where political and non-political groups had demanded that the Union Government withdraw the LG’s powers to approve projects up to Rs 100 crore.
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