₹7,395.55 crore PM Viksit Gram Swaraj Yojana approved

Union Cabinet approved Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) on October 28, 2026, for rural local governance across India. The centrally sponsored scheme is expected to cover more than 2.55 lakh Panchayats and traditional local bodies.

The scheme has a total outlay of ₹7,395.55 crore for financial years 2026-27 through 2030-31. Central Government will contribute ₹4,869.48 crore and State Governments ₹2,526.07 crore.

Around 32 lakh elected representatives, Panchayat functionaries and other people involved are identified for direct training and related support. The scheme aims to improve village planning, digital governance, financial accountability and public participation. It will build on eGramSwaraj and other e-Panchayat platforms, and plans to use PANCHAM, an AI-enabled two-way communication platform supporting 17 Indian languages.

Annual targets include more than 2.55 lakh Gram Panchayat Development Plans and more than 2.55 lakh online audit plans. Each coordinated awareness episode is intended to reach at least one crore citizens. These are targets, not completed results.