The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) for implementation from 2026-27 to 2030-31, with a total outlay of Rs 7,395.55 crore — yaani about Rs 7,396 crore — according to an official statement reported by IANS.

Source: IANS

The scheme will run as a Centrally Sponsored Scheme, co-terminus with the Sixteenth Finance Commission period. The Centre will contribute Rs 4,869.48 crore and the states will bear Rs 2,526.07 crore, and the scheme will cover all states and Union Territories.

Source: Rural Voice

According to the official statement, more than 2.55 lakh panchayats and traditional local bodies will be covered, and around 32 lakh elected representatives, panchayat functionaries and other stakeholders will benefit directly. Each coordinated awareness-generation episode under the scheme will reach at least one crore citizens.

Rs 7,395.55 croreTotal outlay, 2026-27 to 2030-31
2.55 lakh+Panchayats and local bodies covered
32 lakhRepresentatives and functionaries to benefit
Rs 4,869.48 croreCentre's share

Every year, about 2.55 lakh Samagra Gram Panchayat Development Plans will be prepared on the eGramSwaraj portal, bringing together village priorities, the interventions of concerned central and state departments and available resources through participatory, evidence-based planning.

The scheme will strengthen eGramSwaraj and other e-Panchayat systems through a shared digital platform carrying information on government schemes, beneficiaries, community assets and available resources, helping panchayats identify development gaps and monitor schemes more effectively. It also supports at least 2.55 lakh online audit plans a year through AuditOnline, alongside capacity building, financial transparency and better mobilisation of panchayats' own revenue.

Source: The World Opinion

The government says the initiative is designed to transform gram panchayats from mere administrative units into real centres of local development and good governance, connecting the vision of Viksit Bharat directly with the needs and aspirations of villages. Implementation begins in 2026-27.