The Union Cabinet has approved the PM Viksit Gram Swaraj Yojana (PM VGSY) as a Centrally Sponsored Scheme. Prime Minister Narendra Modi chaired the meeting on 28 October 2026. The scheme will run from 2026-27 to 2030-31, alongside the Sixteenth Finance Commission period. Also, Union Minister Ashwini Vaishnaw called it a “next-generation governance transformation programme”. Hence, it aims to make Gram Panchayats the centre of local planning.
Outlay and Funding Share
The total outlay stands at Rs 7,395.55 crore. Of this, the Centre will provide Rs 4,869.48 crore. Meanwhile, the States will contribute Rs 2,526.07 crore. The scheme covers all States and Union Territories. In addition, it includes traditional local bodies in non-Part IX areas.
Five Components of the Scheme
First, Panchayats will prepare at least 2.55 lakh Gram Panchayat Development Plans yearly on the eGramSwaraj Portal. Second, the scheme will give a consolidated digital view of schemes, beneficiaries and assets. Third, it will spread awareness through Gram Sabhas and the AI-enabled PANCHAM platform in 17 languages. Fourth, it will train elected representatives and functionaries. Finally, at least 2.55 lakh online audit plans will run annually through AuditOnline.
Who Will Benefit?
According to the release, about 32 lakh representatives, functionaries and stakeholders will benefit directly. Notably, the Sixteenth Finance Commission recommended about Rs 4.35 lakh crore in grants for Rural Local Bodies. So, PM VGSY will help Panchayats use them well.
How States Will Implement It
States and UTs will submit Annual Action Plans. Then a Central Empowered Committee will appraise and approve them. However, the scheme creates no permanent posts. Interestingly, the release does not say whether PM VGSY replaces the revamped Rashtriya Gram Swaraj Abhiyan. That scheme ran from 1 April 2022 to 31 March 2026.
About Panchayati Raj in India
The 73rd Constitutional Amendment Act, 1992, came into force on 24 April 1993. It added Part IX, covering Articles 243 to 243O. Also, the Eleventh Schedule lists 29 subjects for Panchayats.
PM Viksit Gram Swaraj Yojana: Key Facts for Revision
- Approved: 28 October 2026, Union Cabinet
- Type: Centrally Sponsored Scheme
- Period: 2026-27 to 2030-31
- Outlay: Rs 7,395.55 crore (Centre Rs 4,869.48 crore; States Rs 2,526.07 crore)
- Coverage: Over 2.55 lakh Panchayats and traditional local bodies
Why PM Viksit Gram Swaraj Yojana Matters for UPSC and UKPSC
Notably, Panchayati Raj appears often in Polity papers. So, remember the outlay, the Centre-State shares and the five components. Also, link the scheme with Part IX and Finance Commission grants. For official updates, also visit the Ministry of Panchayati Raj. Next, for a related story, read about the Panchayat Advancement Index award.
So, are you preparing for the UKPSC Upper PCS 2026 prelims? Then join our UKPSC 2026 Prelims Test Series for regular practice.