New Delhi, Oct 28 : The Union Cabinet has approved an allocation of Rs 7,395.55 crore for the Pradhan Mantri Viksit Gram Swaraj Yojana, a new initiative aimed at strengthening Gram Panchayats and improving rural governance across India.
Union Minister Ashwini Vaishnaw said the scheme marks a major shift from government-directed programmes to a development model that enables local institutions to identify their needs, manage resources and prepare their own development plans.
The scheme will be implemented from 2026-27 to 2030-31, in line with the Sixteenth Finance Commission period.
PM Viksit Gram Swaraj Yojana: Budget and Funding
The total outlay of Rs 7,395.55 crore will be shared between the Centre and state governments.
- Central government share: Rs 4,869.48 crore
- States’ share: Rs 2,526.07 crore
- Implementation period: 2026-27 to 2030-31
According to the Ministry of Panchayati Raj, the scheme is a next-generation governance initiative aligned with the national vision of Viksit Bharat.
Training for 32 Lakh Panchayat Representatives
A key objective of the PM Viksit Gram Swaraj Yojana is to improve the skills and governance capabilities of elected representatives.
Around 32 lakh elected representatives, along with Panchayat officials and other stakeholders, are expected to benefit directly from the programme. It will cover more than 2.55 lakh Panchayats and traditional local bodies.
The scheme will provide general and specialised training to strengthen local planning, resource management and communication with citizens.
It will also use Gram Sabhas, digital platforms and other local forums to promote awareness of government schemes and national development initiatives. Each awareness-generation exercise will aim to reach at least one crore citizens.
Focus on Village Development Plans
The scheme aims to improve rural development through locally prepared plans that reflect the specific needs and priorities of villages.
It will support the preparation of 2.55 lakh comprehensive Gram Panchayat Development Plans every year through the eGramSwaraj portal.
These plans will combine village-level priorities, Central and state government programmes, and available financial resources on a common digital platform. Better coordination among government departments is also expected to help identify development gaps and improve the use of available funds.
Financial Empowerment of Gram Panchayats
Another major focus of the scheme is to make Panchayats more financially self-reliant.
The programme will encourage local bodies to use Finance Commission grants effectively and increase their own-source revenue. Better financial management is expected to help Panchayats fund local development priorities and reduce their dependence on external assistance.
Online Audits to Improve Transparency
The PM Viksit Gram Swaraj Yojana will also strengthen financial accountability at the village level.
Under the programme, at least 2.55 lakh online audit plans will be prepared annually, with a focus on completing the corresponding audits on time through the AuditOnline portal.
The scheme will promote improved accounting practices, public disclosure of financial information and better revenue mobilisation to strengthen transparency in Panchayat administration.
How Will the Scheme Be Implemented?
State governments and Union Territory administrations will implement the scheme by submitting annual action plans for assessment and approval by a designated Central Empowered Committee.
The programme will cover all states and Union Territories, including traditional local bodies in areas where the Panchayati Raj system does not exist.
No permanent posts will be created under the scheme. However, contractual staff may be appointed at the state, district and block levels, depending on requirements, to provide technical support.
Conclusion
The PM Viksit Gram Swaraj Yojana aims to strengthen rural governance through better training, digital planning, financial management and transparent auditing. With an allocation of Rs 7,395.55 crore over five years, the initiative seeks to empower Gram Panchayats to plan and implement development programmes according to local needs, supporting the broader goal of Viksit Bharat.
