Government and Administration of Pondicherry

Pondicherry is a Union Territory, not a separate State. A Union Territory (UT) has its own government but falls directly under the Central Government in New Delhi. Though a UT also has an elected Chief Minister and cabinet members, laws and legislative regulations made in these areas must get sanction or be ratified by the Central Government (Centre). The Centre is represented by the Lt. Governor, who resides at the Raj Nivas at the Park, the former palace of the French Governor.

The Centre is also responsible for the financial well-being of these Union Territories, whereas the states get more or less a fixed amount and need to balance their budget by their own revenue and income. Hence, taxes in the UTs are usually lower than in the states.