New Delhi, Oct 28 (IANS) The Union Cabinet, chaired by the Prime Minister Narendra Modi, on Wednesday approved the Centrally sponsored Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) for implementation from 2026-27 to 2030-31 with an outlay of Rs 7,395.55 crore.
The central share in the scheme is Rs 4,869.48 crore while the state share is Rs 2,526.07 crore. It will be co-terminus with the Sixteenth Finance Commission period, according to an official statement.
Around 32 lakh elected representatives, along with panchayat functionaries and other stakeholders, across over 2.55 lakh panchayats and traditional local bodies will be direct beneficiaries of the scheme. Each awareness-generation episode will reach at least 1 crore citizens.
The scheme aims to support the preparation of 2.55 lakh holistic Gram Panchayat Development Plans annually on the eGramSwaraj Portal, bringing together village priorities, interventions of concerned Central and State departments, and available resources through participatory and evidence-based planning.
Its impact will reach at least 1 crore citizens in each coordinated awareness-generation exercise, using existing digital and outreach platforms, Gram Sabhas and other Panchayat forums to improve understanding of relevant Government schemes and national initiatives and encourage informed discussion of their local implications.
The scheme will strengthen governance capabilities of around 32 lakh elected representatives, along with Panchayat functionaries and other stakeholders, annually, through capacity building and digital handholding to improve holistic planning, communication with citizens, resource management and progress towards locally relevant Sustainable Development Goals.
It will support preparation of at least 2.55 lakh online audit plans annually and timely completion of the corresponding audits through AuditOnline. Alongside improved accounting, public disclosure, and Own Source Revenue mobilisation, this will strengthen accountability for available funds and support more financially self-reliant Panchayats.
According to the official statement, no permanent posts will be created under the scheme. However, the scheme may engage need-based contractual human resources at the State, District, and Block levels as part of the institutional mechanism to provide technical support and achieve its objectives.
The scheme will extend to all States and UTs, including institutions of rural local government in non-Part IX areas where Panchayats do not exist.
With the Sixteenth Finance Commission recommending around Rs 4.35 lakh crore in grants for Rural Local Bodies during 2026–27 to 2030–31, Panchayats need the capacity to bring together national priorities, government schemes, available resources, and local aspirations. PM VGSY will support this approach through holistic planning, cross-departmental coordination, capacity building, and informed deliberations through Gram Sabhas, the statement said.
The scheme will strengthen the capacity of panchayatsto effectively utilize Finance Commission grants and other funds, mobilize Own Source Revenue (OSR), and ensure online accounting, auditing and public disclosure. This will promote transparent resource use, address local development gaps and foster accountable, self-reliant panchayats, the statement added.
–IANS
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