The demand for Ladakh as separate Union Territory (UT) was first raised by the parliamentarian Kushok Bakula Rinpoche around 1955, which was later carried forward by another parliamentarian Thupstan Chhewang. The former Jammu and Kashmir state use to obtain large allocation of annual funds from the union government based on the fact that the large geographical area of the Ladakh (comprising 65% of total area), but Ladakh was allocated only 2% of the state budget based on its relative population. Within the first year of the formation of Ladakh as separate union territory, its annual budget allocation has increased 4 times from 57 crore to 232 crore.