Union Cabinet approves Rs 7,395 crore for PM Viksit Gram Swaraj Yojana

New Delhi: The Union Cabinet on Wednesday approved an allocation of Rs 7,395 crore for the Pradhan Mantri Viksit Gram Swaraj Yojana, with Union Minister Ashwini Vaishnaw calling it a paradigm shift from prescription-based schemes to a model focused on local-level capacity building and planning.

Vaishnaw said the scheme would enable panchayats to identify their local resources and constraints, and prepare development plans based on their specific needs.

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"This is a paradigm change," the minister said, explaining that the approach would move away from schemes that prescribe interventions and instead strengthen local institutions to plan for their own development.

In an official statement, the Panchayati Raj Ministry called it a "next-generation governance transformation initiative aligned with the national vision of Viksit Bharat".

The scheme is approved for implementation from 2026-27 to 2030-31, co-terminus with the Sixteenth Finance Commission period.

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Out of the scheme's outlay of Rs 7,395.55 crore, the Central share is Rs 4,869.48 crore and the states' share is Rs 2,526.07 crore.

A major focus of the scheme is capacity-building of elected representatives. General and specialised training will be provided to elected representatives to improve their functioning and governance capabilities.

The Panchayati Raj Ministry said around 32 lakh elected representatives, along with panchayat functionaries and other stakeholders, across over 2.55 lakh panchayats and traditional local bodies will be direct beneficiaries of the scheme.

They will receive capacity-building support annually to improve local planning, resource management and communication with citizens.

The scheme will also use existing digital and outreach platforms, gram sabhas and other panchayat forums to reach at least 1 crore citizens in each awareness-generation exercise and promote informed discussions on government schemes and national initiatives.

The scheme seeks to financially empower panchayats through better utilisation of Finance Commission grants and mobilisation of own-source revenue, to make them more self-reliant.

It will support the preparation of 2.55 lakh holistic Gram Panchayat Development Plans annually through the eGramSwaraj portal, bringing together local priorities, interventions of Central and state government departments, and available resources on a common digital platform. It will also strengthen coordination among departments to identify development gaps and improve the utilisation of available funds.

To improve transparency and accountability, the scheme will support the preparation of at least 2.55 lakh online audit plans annually and timely completion of the corresponding audits through AuditOnline. It will also focus on better accounting, public disclosure and mobilisation of panchayats' own-source revenue to make rural local bodies more financially self-reliant.

The scheme will be implemented through state governments and Union Territory administrations, which will submit annual action plans for appraisal and approval by a designated Central Empowered Committee. It will cover all states and Union Territories, including traditional local bodies in areas where panchayats do not exist.

No permanent posts will be created under the scheme, though need-based contractual personnel may be engaged at the state, district and block levels to provide technical support.