India PM Viksit Gram Swaraj Yojana Gets Rs 7395 Crore Cabinet Approval for 2.55 Lakh Panchayats

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Pradhan Mantri Viksit Gram Swaraj Yojana, a new Centrally Sponsored Scheme with a total outlay of Rs 7,395.55 crore to transform grassroots governance across the country. The scheme will run from 2026-27 to 2030-31, matching the period of the Sixteenth Finance Commission, and is designed to strengthen more than 2.55 lakh Gram Panchayats and traditional rural local bodies. Of the total outlay, the Central government will contribute Rs 4,869.48 crore, while state governments will provide Rs 2,526.07 crore. The scheme covers all states and Union Territories, including traditional rural local governance institutions in areas where Panchayats do not exist under Part IX of the Constitution. Announcing the decision after the Cabinet meeting on October 28, Information and Broadcasting Minister Ashwini Vaishnaw described the initiative as a next-generation governance transformation programme aligned with the national vision of Viksit Bharat. He said it marks a shift from prescription-based schemes to a model focused on building capacity at the local level, so that villages can plan their own development. Under the scheme, at least 2.55 lakh holistic Gram Panchayat Development Plans will be prepared every year through the eGramSwaraj portal, bringing together national priorities, government schemes, available resources and local aspirations on a common digital platform. The scheme will also support the preparation of at least 2.55 lakh online audit plans annually, with timely completion of audits through the AuditOnline platform. Around 32 lakh elected representatives, Panchayat functionaries and other stakeholders are expected to benefit directly. The government has also set a target of reaching at least one crore citizens through each coordinated awareness-generation exercise, so that villagers know what schemes and funds are available to them. The initiative comes against the backdrop of the Sixteenth Finance Commission recommending around Rs 4.35 lakh crore in grants for Rural Local Bodies during 2026-27 to 2030-31. Panchayats need the capacity to use those funds well, and this scheme is meant to give them exactly that — better planning, transparent financial management and stronger accountability at the village level.