Cabinet approves Pradhan Mantri Viksit Gram Swaraj Yojana with Rs 7,395 crore outlay

New Delhi: The Union Cabinet on Wednesday approved a Centrally Sponsored Scheme (CSS) --Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY)-- for implementation from 2026-27 to 2030-31. PM VGSY, approved with Rs 7,395 crore outlay, is a next-generation governance transformation initiative aligned with the national vision of Viksit Bharat.

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.

"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," said Ministry of Panchayati Raj.

The direct beneficiaries of the scheme includes around 32 lakh elected representatives, along with Panchayat functionaries and other stakeholders, across over 2.55 lakh Panchayats and Traditional Local Bodies. Each awareness-generation episode will reach at least 1 crore citizens, Ministry of Panchayati Raj added.

Pradhan Mantri Viksit Gram Swaraj Yojana will place the Gram Panchayat at the center of holistic local planning and coordination of development initiatives. Panchayats will be supported to bring together village priorities, relevant Government interventions, and available resources, enabling them to serve as the fulcrum of grassroots development. The scheme will connect the Viksit Bharat vision with rural communities' needs and aspirations.

The scheme will bring together the planning processes of all concerned Central Ministries /Departments and State Governments on a common digital platform to collaborate to prepare a holistic Gram Panchayat Development Plan (GPDP).

Building on eGramSwaraj and existing e-Panchayat systems, the scheme will bring information on Government schemes, beneficiaries, benefits, community assets and available resources onto a common digital platform. This will help Panchayats identify gaps, address local needs and improve planning, coordination and monitoring.

PM VGSY will use existing training, digital, and outreach platforms, including PANCHAM (an AI-enabled, multilingual, two-way communication platform in 17 Indian languages), to explain government schemes and national initiatives in simple, accessible language. Gram Sabhas and Panchayat platforms will encourage community discussions, helping connect national priorities with local needs and village development goals.

The scheme will be implemented through the respective State Governments and Union Territory Administrations. States/UTs will submit Annual Action Plans specifying activities, priorities and requirements in accordance with the scheme’s objectives and guidelines. The designated Central Empowered Committee will appraise and approve these plans in accordance with applicable procedures and norms. The Central Government and States/UTs will undertake activities within their respective areas of responsibility, supported by coordination, technical assistance, monitoring and review. Existing institutional, capacity-building, digital, and communication systems will support implementation at the grassroots level.