In the Kerala Budget 2025-26 presented on February 7, Finance Minister KN Balagopal announced an allocation of Rs 750 crore for the rehabilitation of victims affected by the devastating Wayanad landslides. While the state government had earlier promised a substantial amount for the recovery effort, the new budgetary allocation falls significantly short of the estimated Rs 2,221 crore needed for comprehensive reconstruction and rehabilitation, according to a Post Disaster Needs Assessment (PDNA) report.
The disaster, which struck the district on July 30, 2024, had claimed 254 lives, with 44 individuals still unaccounted for. Over 2,000 homes were destroyed, and the livelihoods of thousands were severely impacted. The overall financial loss from the tragedy was pegged at Rs 1,202 crore, making it one of the most severe natural disasters the state has faced in recent years.
While the state is shouldering the burden of this recovery, Balagopal expressed disappointment over the Union government’s indifference to the calamity. Despite the scale of the disaster, the recent Union Budget for 2025-26 did not offer any assistance for the Wayanad tragedy, unlike the central government’s previous responses to disasters in other states.
Addressing the issue, Balagopal emphasised that the Rs 750 crore allocated in the state budget would be supplemented through contributions from various sources, including the Chief Minister’s Distress Relief Fund (CMDRF), the State Disaster Management Authority (SDMA), central grants, corporate social responsibility (CSR) initiatives, and public and private donations. The government has also assured that any additional funds required will be provided in due course.
In response to the growing concerns about Kerala’s vulnerability to climate change, the Finance Minister outlined plans for more sustainable development practices, with a focus on scientific spatial planning. The state government aims to curb the harmful effects of rapid, unplanned urbanisation, which has been exacerbating environmental risks, including landslides and flooding.
Wayanad Tragedy and Rehabilitation
The landslides, which hit the regions of Mundakkai and Chooralmala in Wayanad in July caused widespread destruction, burying homes, livelihoods, and infrastructure under tonnes of mud and debris. Besides hundreds of deaths, more than 2,000 families were left homeless, and countless others lost their means of income.
Wayanad district was struck by a series of devastating landslides during the monsoon last year. In the aftermath of the disaster, Kerala’s Chief Minister Pinarayi Vijayan assured the public that the government would do everything possible to provide relief. In January 2025, the CM announced plans to create two new townships to rehabilitate those displaced by the tragedy.
The new settlements, to be located at Elstone and Nedumpala estates in Wayanad, will offer vital amenities such as markets, schools, hospitals, and recreational spaces.
The state’s rehabilitation plan also includes a micro-plan survey aimed at ensuring the survivors’ livelihoods through agriculture, animal husbandry, and micro-entrepreneurship initiatives.
The central government, through Prime Minister Narendra Modi, had initially promised support for Kerala’s recovery efforts in the wake of the landslides. The Prime Minister’s Office had announced an ex-gratia of Rs 2 lakh for the families of each deceased and Rs 50,000 for the injured. However, despite this initial assurance, the central government did not allocate any significant funds for the rehabilitation of the affected families in the Union Budget 2025-26.
The government of Kerala, committed to supporting its citizens in this time of need, is hopeful that more financial assistance will be forthcoming, particularly from the Union government. As the state continues its rehabilitation efforts, it faces the challenge of securing the resources necessary to rebuild Wayanad and restore the livelihoods of its people.