The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) on 28 October 2026. It is a Centrally Sponsored Scheme with a total outlay of Rs 7,395.55 crore, comprising a Central share of Rs 4,869.48 crore and a State share of Rs 2,526.07 crore.
The scheme will run from 2026-27 to 2030-31, co-terminus with the Sixteenth Finance Commission period, and is a next-generation governance transformation initiative aligned with the national vision of Viksit Bharat.
What the Pradhan Mantri Viksit Gram Swaraj Yojana Will Do
The scheme will place the Gram Panchayat at the centre of holistic local planning and coordination of development work in villages. It will support the preparation of 2.55 lakh holistic Gram Panchayat Development Plans every year on the eGramSwaraj Portal, bringing together village priorities, the interventions of Central and State departments and the available resources through participatory and evidence-based planning. Around 32 lakh elected representatives, along with Panchayat functionaries and other stakeholders, across more than 2.55 lakh Panchayats and traditional local bodies will be direct beneficiaries, through capacity building and digital handholding. Each coordinated awareness-generation exercise is expected to reach at least 1 crore citizens.
Why PM VGSY Matters for Haryana Villages
The scheme assumes special importance because the Sixteenth Finance Commission has recommended around Rs 4.35 lakh crore in grants for Rural Local Bodies during 2026-27 to 2030-31, and Panchayats need the capacity to use these funds well. PM VGSY will use existing training, digital and outreach platforms, including PANCHAM, an AI-enabled multilingual two-way communication platform in 17 Indian languages, to explain government schemes and national initiatives in simple language. It will also support at least 2.55 lakh online audit plans every year through AuditOnline, along with improved accounting, public disclosure and Own Source Revenue mobilisation, so that Panchayats become more transparent, accountable and financially self-reliant. The scheme is an upgraded version of the Rashtriya Gram Swaraj Abhiyan, with a greater emphasis on holistic development.
How PM VGSY Will Work and Who It Covers
The scheme will extend to all States and Union Territories, including institutions of rural local government and traditional local bodies in non-Part IX areas where Panchayats do not exist, so Haryana’s villages are fully covered. It will be implemented through the State Governments and Union Territory Administrations, which will submit Annual Action Plans, and a Central Empowered Committee will appraise and approve these plans. No permanent posts will be created under the scheme, though need-based contractual human resources may be engaged at the State, District and Block levels for technical support. Existing departmental arrangements for delivering individual schemes will continue.
Frequently Asked Questions
Q: What is the Pradhan Mantri Viksit Gram Swaraj Yojana?
A: A Cabinet-approved Centrally Sponsored Scheme that strengthens Gram Panchayats as centres of local planning, coordination and transparent use of funds.
Q: How much money is allocated for PM Viksit Gram Swaraj Yojana?
A: Rs 7,395.55 crore for 2026-27 to 2030-31, with Rs 4,869.48 crore from the Centre and Rs 2,526.07 crore from the States.
Q: Who will benefit from PM VGSY?
A: Around 32 lakh elected representatives, Panchayat functionaries and other stakeholders across more than 2.55 lakh Panchayats and traditional local bodies.
Q: Is PM Viksit Gram Swaraj Yojana a cash scheme for families?
A: No. It is not a cash-transfer programme for households; it builds the capacity of Panchayats to plan development, coordinate government work and account for public money.
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