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News: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Pradhan Mantri Viksit Gram Swaraj Yojana on 28 October 2026.
About Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY)
- Type: It is a Centrally Sponsored Scheme (CSS).
- Nodal Ministry: Ministry of Panchayati Raj
- Aim: The scheme aims to transform Panchayats into empowered, self-reliant, accountable and high-performing institutions of local self-government.
- Duration: It will operate from 2026–27 to 2030–31, co-terminus with the Sixteenth Finance Commission period.
- Financial outlay: The scheme outlay is Rs.7,395.55 crore, comprising a Central Share of Rs.4,869.48 crore and a State Share of Rs.2,526.07 crore.
- States/districts covered: The scheme will extend to all States/UTs, including institutions of rural local government (traditional local bodies) in non-Part IX areas where Panchayats do not exist.
- Implementation Process
- Annual Action Plans: State Governments and UT Administrations will submit plans specifying activities, priorities and requirements.
- Approval Mechanism: The designated Central Empowered Committee will appraise and approve these plans under applicable procedures and norms.
- Targets
- Holistic Planning: The scheme will support preparation of 2.55 lakh Gram Panchayat Development Plans (GPDPs) annually on eGramSwaraj.
- Citizen Awareness: Each awareness-generation episode will reach at least 1 crore citizens.
- Capacity Building: Around 32 lakh governance stakeholders will receive annual support.
- Financial Accountability: The scheme will support at least 2.55 lakh online audit plans annually, with timely completion of corresponding audits through AuditOnline.
- Six Holistic Pillars
- Local Governance: Gram Panchayats will act as hubs of local governance by coordinating village priorities, government interventions and available resources.
- Holistic Planning: The scheme will integrate Central and State departmental planning on a common digital platform to prepare Gram Panchayat Development Plans (GPDPs) and identify development gaps.
- Digital Governance: Building on eGramSwaraj and existing e-Panchayat systems, a common platform will provide information on schemes, beneficiaries, benefits, community assets and available resources.
- Connecting National Priorities with Local Needs: PANCHAM (Panchayat Assistance and Messaging Chatbot), an AI-enabled platform in 17 Indian languages, will support accessible communication and informed discussions through Gram Sabhas and Panchayat forums.
- Capacity Building: Training will strengthen representatives’ and functionaries’ skills in digital platforms, planning, resource management and citizen communication.
- Resource Utilisation: Improved accounting, auditing, public disclosure and Own Source Revenue (OSR) mobilisation will promote transparency and financial self-reliance.
