Cabinet Approves PM Viksit Gram Swaraj Yojana Worth ₹7,395 Crore

• The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY), a major initiative designed to strengthen Panchayati Raj institutions and improve grassroots governance across India.
• The scheme has a total financial outlay of ₹7,395.55 crore and will be implemented from 2026–27 to 2030–31.
• It aims to help Gram Panchayats improve development planning, digital governance, financial management and public participation.

PM Viksit Gram Swaraj Yojana: Key Highlights

• Total outlay: ₹7,395.55 crore
• Central government share: ₹4,869.48 crore
• State government share: ₹2,526.07 crore
• Implementation period: 2026–27 to 2030–31
• Coverage: All states and Union Territories
• Direct beneficiaries: Around 32 lakh elected representatives, Panchayat functionaries and other stakeholders
• Institutional coverage: More than 2.55 lakh Panchayats and traditional local bodies

What Is PM Viksit Gram Swaraj Yojana?

• PM VGSY is a Centrally Sponsored Scheme intended to transform rural local governance.
• It focuses on strengthening Panchayats so they can identify local priorities, coordinate government programmes and prepare development plans based on village-level needs.
• The initiative aligns with the government’s broader Viksit Bharat vision and emphasises participatory planning, accountability and better utilisation of available resources.

1. Better Planning for Village Development

• The scheme will support the preparation of more than 2.55 lakh holistic Gram Panchayat Development Plans annually through the eGramSwaraj portal.
• These plans will bring together village priorities, relevant central and state government programmes, and available financial resources.
• The aim is to help Panchayats identify development gaps and coordinate projects more effectively.

2. Digital Governance and Transparency

• PM VGSY will build on existing digital systems to improve access to information about government schemes, beneficiaries, community assets and available resources.
• Better digital integration is expected to support planning, monitoring, financial management and transparency at the grassroots level.

3. Training for 32 Lakh Panchayat Stakeholders

• Around 32 lakh elected representatives, Panchayat functionaries and other stakeholders are expected to receive capacity-building support annually.
• Training and digital assistance will focus on local development planning, resource management, communication with citizens and effective governance.

4. Stronger Financial Accountability

• The scheme will support the preparation of at least 2.55 lakh online audit plans annually and the timely completion of corresponding audits through AuditOnline.
• It will also promote better accounting, public disclosure and mobilisation of Panchayats’ own-source revenue to encourage greater financial self-reliance.

5. Nationwide Coverage

• PM VGSY will cover all states and Union Territories, including eligible traditional rural local government institutions in areas where Panchayats do not exist under Part IX of the Constitution.
• States and Union Territories will implement the scheme through annual action plans, supported by central-level appraisal, technical assistance and monitoring.

Will the Scheme Create Government Jobs?

• The official announcement states that PM VGSY will not create permanent posts. However, need-based contractual personnel may be engaged at state, district and block levels to provide technical support.
• Therefore, the scheme should not be interpreted as a direct announcement of permanent government vacancies.