The Union Home Ministry issued an office memorandum on January 2 under the Delegation of Financial Powers Rules (DFPRs), 2024. The order applies to Union Territories without legislatures, including Chandigarh, Ladakh, Lakshadweep, Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu.

Earlier, in September 2025, the Centre had restricted financial powers of senior UT officials. As a result, many routine and high-value development works faced delays due to mandatory approvals from New Delhi. However, the latest decision reverses those curbs and restores local authority.

Under the revised framework, the Administrator can approve projects from the initial stage to final sanction, up to ₹100 crore, after consulting the Finance Secretary or Financial Advisor. The rule applies only when adequate budget provisions exist.

At the same time, the Centre has placed safeguards. The Administrator cannot sub-delegate these powers, and officials must submit quarterly approval reports to the Department of Expenditure through the Home Ministry.

Officials believe the move will revive stalled projects and improve governance efficiency in Chandigarh.

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