PM Viksit Gram Swaraj Yojana: New Scheme to Strengthen Panchayats

What happened

• The Union Cabinet approved the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) on 28 October 2026.
• It is a Centrally Sponsored Scheme under the Ministry of Panchayati Raj.
• It runs from 2026-27 to 2030-31, the term of the Sixteenth Finance Commission.
• It builds on the earlier Rashtriya Gram Swaraj Abhiyan (RGSA).

Key facts

Item	Detail
Approved by	Union Cabinet
Purpose	To strengthen Panchayat planning, audit and capacity
Outlay	₹7,395.55 crore (Centre ₹4,869.48 crore, States ₹2,526.07 crore)
Coverage	All States and UTs, over 2.55 lakh Panchayats and traditional local bodies
Beneficiaries	About 32 lakh elected representatives and functionaries

What the scheme will do

• Panchayats will prepare Gram Panchayat Development Plans every year on the eGramSwaraj portal.
• Audits will be planned and completed online through AuditOnline.
• Citizens will be informed through Gram Sabhas and PANCHAM, an AI-enabled platform in 17 languages.
• Traditional local bodies in areas where Part IX does not apply are also covered.
• States submit Annual Action Plans. A Central Empowered Committee approves them.

Why it matters

• The Sixteenth Finance Commission has recommended about ₹4.35 lakh crore in grants for rural local bodies for 2026-31.
• The scheme helps Panchayats use these grants well and raise their own revenue.

Static connect

• Article 40 (DPSP) directs the State to organise village Panchayats.
• The 73rd Amendment Act, 1992 added Part IX (Articles 243 to 243O) and the Eleventh Schedule with 29 subjects.
• Article 243G deals with the powers of Panchayats. Article 243I provides for the State Finance Commission.
• PESA Act, 1996 extends Panchayats to Fifth Schedule areas.

Exam relevance: TGPSC, APPSC (Polity, Schemes); UPSC Prelims and GS-2.