The Union Cabinet duirng October 2026 has approved a Centrally Sponsored Scheme (CSS), namely, the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY). It is a next-generation governance transformation initiative targeting gram panchayats and is aligned with the national vision of Viksit Bharat. Scheme duration and financial outlay The scheme is approved for implementation from 2026-27 to 2030-31 (co-terminus with the Sixteenth Finance Commission period). The scheme outlay is 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. Target beneficiaries and impact Around 32 lakh elected representatives, along with Panchayat functionaries and other stakeholders, across over 2.55 lakh Panchayats and Traditional Local Bodies will be direct beneficiaries of the scheme. Each awareness-generation episode will reach at least 1 crore citizens. Major impact including employment generation potential: Support the preparation of 2.55 lakh holistic Gram Panchayat Development Plans annually on the eGramSwaraj Portal, bringing together village priorities, interventions of concerned Central and State departments, and available resources through participatory and evidence-based planning. Reach at least 1 crore citizens in each coordinated awareness-generation exercise, using existing digital and outreach platforms, Gram Sabhas and other Panchayat forums to improve understanding of relevant Government schemes and national initiatives and encourage informed discussion of their local implications. Strengthen governance capabilities of around 32 lakh elected representatives, along with Panchayat functionaries and other stakeholders, annually, through capacity building and digital handholding to improve holistic planning, communication with citizens, resource management and progress towards locally relevant Sustainable Development Goals. Support preparation of at least 2.55 lakh online audit plans annually and timely completion of the corresponding audits through AuditOnline. Alongside improved accounting, public disclosure, and Own Source Revenue mobilization, this will strengthen accountability for available funds and support more financially self-reliant Panchayats. States/districts covered: The scheme will extend to all States/UTs, including institutions of rural local government (traditional local bodies) in non-Part IX areas where Panchayats do not exist. Scheme overview Pradhan Mantri Viksit Gram Swaraj Yojana is a Centrally Sponsored Scheme for transforming rural local governance. The initiative aligns grassroots development with the national vision of Viksit Bharat. It aims to transform Panchayats into empowered, selfreliant, accountable and high-performing institutions of local self-government. PM Viksit Gram Swaraj Yojana focuses on six holistic pillars that will strengthen identification of local constraints, improve local planning and governance capabilities, promote digital integration, and ensure transparent resource utilisation at the grassroots level. The 6 Pillars of PM Viksit Gram Swaraj Yojana are Gram Panchayats as Hubs of Local Governance: PM Viksit Gram Swaraj Yojana places Gram Panchayats at the centre of local development planning. Panchayats will coordinate village priorities, government interventions, and available resources. This approach will connect national development goals with rural communities' needs and aspirations. Holistic Planning at Gram Panchayat Level: The scheme will bring Central and State departmental planning processes onto a common digital platform. This will support holistic Gram Panchayat Development Plans (GPDPs). The integrated approach will help departments identify gaps, align interventions, and use available resources effectively. Existing departmental arrangements for delivering individual schemes will continue. Digital Governance: Building on eGramSwaraj and existing e-Panchayat systems, PM Viksit Gram Swaraj Yojana will consolidate information on a common digital platform. The platform will include government schemes, beneficiaries, benefits, community assets, and available resources. This will help Panchayats identify development gaps and improve planning, coordination, and monitoring. This platform will also help in knowledge sharing among Gram Panchayats of different States. Connecting National Priorities with Local Needs: The scheme will use existing training, digital, and outreach platforms to explain government initiatives in accessible language. Gram Sabhas and Panchayat forums will encourage informed community discussions, thereby, encouraging Jan Bhagidari. PANCHAM will support this effort through Al-enabled, multilingual, and two-way communication in 17 Indian languages. These platforms will help connect national priorities with local needs and village development goals. Capacity Building to put the Approach into Practice: PM Viksit Gram Swaraj Yojana will strengthen the capabilities of elected representatives and Panchayat functionaries. This will be conducted through Integrated Government Online Training and the National Academy for Capacity Building of Civil Services. Both specialized (for example, preparing engineering estimate) and general training would be imparted to local representatives. Capacity building will support the effective use of digital platforms, interpretation of scheme and resource information, holistic planning, and communication with citizens. These capabilities will help Panchayats translate local discussions into development plans and follow-up action. Transparent and Efficient Utilization of Available Resources: The scheme will strengthen Panchayats' capacity to utilise Finance Commission grants and other funds effectively. It will also support Own Source Revenue (OSR) mobilisation. Online accounting, auditing and public disclosure will improve financial accountability. These measures will promote transparent resource utilisation and support financially self-reliant Panchayats. Implementation strategy: The scheme will be implemented through the respective State Governments and Union Territory Administrations. States/UTs will submit Annual Action Plans specifying activities, priorities and requirements in accordance with the scheme’s objectives and guidelines. The designated Central Empowered Committee will appraise and approve these plans in accordance with applicable procedures and norms. The Central Government and States/UTs will undertake activities within their respective areas of responsibility, supported by coordination, technical assistance, monitoring and review. Existing institutional, capacity-building, digital, and communication systems will support implementation at the grassroots level. Source : PIB