The Union Cabinet on 28 October 2026 approved the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY), a Centrally Sponsored Scheme to transform rural governance. With a total outlay of Rs 7,395.55 crore, the initiative aims to support 2.55 lakh Panchayats in creating holistic development plans and improving financial accountability. The scheme will be implemented from 2026-27 to 2030-31 across all States and Union Territories. It will benefit approximately 32 lakh elected representatives and functionaries through capacity building and digital tools.
Key points
- Total outlay: Rs 7,395.55 crore (Central share: Rs 4,869.48 crore; State share: Rs 2,526.07 crore)
- Period: Implementation from 2026-27 to 2030-31
- Beneficiaries: Around 32 lakh elected representatives and functionaries across 2.55 lakh Panchayats
- Targets: Annual preparation of 2.55 lakh holistic development plans and 2.55 lakh online audit plans
- Reach: Each awareness exercise to reach at least 1 crore citizens
When it applies
- implementation of PM VGSY
- implementation of PM VGSY
Who it affects
- elected representatives, Panchayat functionaries, and stakeholders across Panchayats and Traditional Local Bodies