PM Viksit Gram Swaraj Yojana Cleared With Rs 7,395.55 Crore
The Union Cabinet approved the Pradhan Mantri Viksit Gram Swaraj Yojana, a centrally sponsored panchayat scheme of 7,395.55 crore rupees for 2026-27 to 2030-31.

Why in News
On 28 October 2026 the Union Cabinet cleared the Pradhan Mantri Viksit Gram Swaraj Yojana, a Centrally Sponsored Scheme of 7,395.55 crore rupees to strengthen panchayat planning, capacity and audit from 2026-27 to 2030-31.
The Union Cabinet, with Prime Minister Narendra Modi in the chair, approved a new Centrally Sponsored Scheme on 28 October 2026 called the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY). It is designed as a governance scheme rather than a construction scheme: its money goes into planning, training, digital systems and audit at the panchayat level instead of into assets. The scheme will run from 2026-27 to 2030-31, a term deliberately made co-terminus with the award period of the Sixteenth Finance Commission.
How the money is split
The total outlay is 7,395.55 crore rupees. Of this the Centre will put in 4,869.48 crore rupees and the states the remaining 2,526.07 crore rupees. The timing matters because the Sixteenth Finance Commission has recommended grants of about 4.35 lakh crore rupees for rural local bodies over the same five years, and the scheme is meant to build the capacity that panchayats need in order to spend those grants well.
| Head | Amount |
| Total outlay | 7,395.55 crore rupees |
| Central share | 4,869.48 crore rupees |
| State share | 2,526.07 crore rupees |
| Period | 2026-27 to 2030-31 |
Who it reaches
Around 32 lakh elected representatives, together with panchayat functionaries and other stakeholders, will be the direct beneficiaries, spread over more than 2.55 lakh panchayats and traditional local bodies. Each awareness exercise under the scheme is expected to reach at least one crore citizens. The scheme extends to every state and union territory, and also to rural local government institutions in non-Part IX areas where panchayats as such do not exist. No permanent posts are to be created; only need-based contractual staff may be engaged at state, district and block levels.
What it will do each year
- Support the preparation of 2.55 lakh holistic Gram Panchayat Development Plans every year on the eGramSwaraj portal
- Strengthen the governance skills of about 32 lakh elected representatives through training and digital handholding
- Back at least 2.55 lakh online audit plans a year and their completion through AuditOnline
- Push own source revenue mobilisation, online accounting and public disclosure so that panchayats become financially self-reliant
PANCHAM and the digital spine
Outreach will travel through existing systems rather than new ones. The scheme will use PANCHAM, an artificial-intelligence enabled two-way communication platform available in 17 Indian languages, to explain central schemes in plain speech, while eGramSwaraj and the e-Panchayat family of systems will carry information on beneficiaries, assets and available funds onto one screen. States and union territories will implement the scheme and submit Annual Action Plans, which a designated Central Empowered Committee will appraise and approve.
Important Facts
| Scheme | Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) |
|---|---|
| Type | Centrally Sponsored Scheme |
| Period | 2026-27 to 2030-31, co-terminus with the Sixteenth Finance Commission |
| Total outlay | 7,395.55 crore rupees |
| Central share | 4,869.48 crore rupees |
| State share | 2,526.07 crore rupees |
| Direct beneficiaries | About 32 lakh elected representatives |
| Coverage | Over 2.55 lakh panchayats and traditional local bodies in all states and union territories |
| Key platforms | eGramSwaraj, AuditOnline and PANCHAM in 17 Indian languages |
| Finance Commission grants | About 4.35 lakh crore rupees recommended for rural local bodies in the same period |
Exam Point of View
Note the full name and short form (PM VGSY), the ministry (Panchayati Raj), the outlay and its split, the five-year period tied to the Sixteenth Finance Commission, the beneficiary numbers, the portals eGramSwaraj and AuditOnline, and PANCHAM with its 17 languages.
Practice Questions
What is the total outlay of the Pradhan Mantri Viksit Gram Swaraj Yojana approved by the Union Cabinet?
- A.4,869.48 crore rupees
- B.7,395.55 crore rupees
- C.2,526.07 crore rupees
- D.10,000 crore rupees
Show answer
The sum is shared between the two tiers of government, and that is exactly why the other options are placed here as traps.
Read the full explanation →PM VGSY is approved for a period that is co-terminus with the award period of which body?
- A.The 8th Central Pay Commission
- B.The Sixteenth Finance Commission
- C.The Fifteenth Finance Commission
- D.NITI Aayog's governing council
Show answer
The scheme has been sanctioned for the years from 2026-27 to 2030-31, and the Cabinet decision states plainly that this term is co-terminus with that commission's period.
Read the full explanation →In how many Indian languages is the PANCHAM communication platform available?
- A.11
- B.13
- C.17
- D.22
Show answer
PANCHAM is described in the Cabinet decision as an artificial-intelligence enabled, multilingual, two-way communication platform working in seventeen Indian languages, and the scheme will use it to explain central programmes to villagers in language they actually speak.
Read the full explanation →On which portal does PM VGSY support the annual preparation of holistic Gram Panchayat Development Plans?
- A.eGramSwaraj
- B.AuditOnline
- C.PANCHAM
- D.PRAGATI
Show answer
The scheme supports the preparation of about 2.55 lakh holistic Gram Panchayat Development Plans every year on that portal, bringing village priorities, departmental interventions and available resources onto one platform for participatory planning.
Read the full explanation →Frequently Asked Questions
What is the outlay of the Pradhan Mantri Viksit Gram Swaraj Yojana?
7,395.55 crore rupees in all, made up of a central share of 4,869.48 crore rupees and a state share of 2,526.07 crore rupees.
For how long will PM VGSY run?
From 2026-27 to 2030-31. The period is co-terminus with the award period of the Sixteenth Finance Commission.
What is PANCHAM?
An artificial-intelligence enabled, multilingual two-way communication platform in 17 Indian languages that the scheme will use to explain government schemes in simple language.
On which portal will Gram Panchayat Development Plans be prepared?
On the eGramSwaraj portal. The scheme supports 2.55 lakh such holistic plans every year, and audit plans through AuditOnline.
Sources
- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2329483 (opens in a new tab) — Press Information Bureau
- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2329491 (opens in a new tab) — Press Information Bureau
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