New Delhi, Jan 2: Ishfaq Gowher
In a decisive move to fast-track development in Union Territories without legislatures, the Centre has restored and delegated sweeping financial powers to the Lieutenant Governor of Ladakh, authorising direct appraisal and approval of development projects up to ₹100 crore under the Delegation of Financial Powers Rules (DFPRs), 2024.
An official order issued by the Ministry of Home Affairs grants similar powers to the Administrators/LGs of Ladakh, Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, and Lakshadweep, enabling them to clear major projects without seeking prior central approval, subject to laid-down financial safeguards.
The order mandates that the LG shall exercise these powers in consultation with the Finance Secretary or Financial Advisor of the respective Union Territory, ensuring fiscal discipline and procedural compliance. It also clearly states that adequate budgetary provision is mandatory and that the delegated authority cannot be re-delegated.
To maintain central oversight, all projects approved under these powers must be reported quarterly to the Department of Expenditure through the MHA, with fixed reporting deadlines in July, October, January and April.
The Centre further clarified that expenditure sanction—from in-principle approval to final clearance—will continue under Rule 16 of DFPRs, 2024, following mandatory appraisal by competent authorities as per the Ministry of Finance’s Office Memorandum dated August 5, 2016.
Significantly, the latest decision overrides the earlier curtailment order issued on September 19, 2025, restoring financial autonomy to UT Administrations. The delegation has been approved by the Department of Expenditure, Ministry of Finance, vide Office Memorandum dated December 26, 2025.
The move is expected to remove bureaucratic bottlenecks, accelerate infrastructure projects, and strengthen administrative efficiency in strategically vital Ladakh, which has long sought faster financial decision-making at the local level.
