The Pradhan Mantri Viksit Gram Swaraj Yojana will support more than 2.55 lakh panchayats and traditional local bodies from 2026-27, with digital planning and training aimed at strengthening grassroots decision-making.
The Union Cabinet has approved a new centrally sponsored programme aimed at reshaping village-level governance and planning across India, with implementation scheduled to begin in 2026-27 and run through 2030-31. According to an official statement cited by NDTV, the Pradhan Mantri Viksit Gram Swaraj Yojana will carry a total outlay of Rs 7,395.55 crore, with the Centre contributing Rs 4,869.48 crore and states Rs 2,526.07 crore.
The scheme is intended to reach about 32 lakh elected representatives, as well as panchayat functionaries and other stakeholders, across more than 2.55 lakh panchayats and traditional local bodies. NDTV reported that the programme will support the preparation of annual Gram Panchayat Development Plans through the eGramSwaraj portal, combining local priorities with departmental schemes and available resources in an effort to make planning more participatory and evidence-based.
Government officials say the initiative is designed to move panchayats away from a top-down model and towards stronger local decision-making. The Economic Times reported that Union Minister Ashwini Vaishnaw described the scheme as a shift from prescription-led interventions to one focused on capacity-building and local planning. The programme will also include training and digital support for elected representatives, with an emphasis on better governance, communication with citizens, accounting, auditing and the mobilisation of own-source revenue, according to the government statement.
The Cabinet’s approval comes as the Sixteenth Finance Commission has recommended grants of about Rs 4.35 lakh crore for rural local bodies over the same five-year period. Officials said the new scheme is meant to help panchayats make better use of those funds, improve transparency and disclosures, and strengthen their ability to tackle local development gaps. The plan will cover all states and Union territories, including rural local government institutions in areas where panchayats do not exist, and no permanent posts will be created under it, though contractual support may be taken on at the state, district and block levels.
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