Cabinet approves ₹7,395.55 crore PM Viksit Gram Swaraj Yojana to strengthen 2.55 lakh panchayats
Key facts
- On 28 October 2026, the Union Cabinet approved the Pradhan Mantri Viksit Gram Swaraj Yojana. It is a centrally sponsored scheme for 2026-27 to 2030-31.
- The total outlay is ₹7,395.55 crore. The Centre bears ₹4,869.48 crore and the States ₹2,526.07 crore.
- It covers over 2.55 lakh panchayats and traditional local bodies in all States and Union Territories. This includes traditional rural bodies in non-Part IX areas.
- Annual targets include over 2.55 lakh Gram Development Plans and as many online audit plans. About 32 lakh people benefit directly.
- The scheme period matches the 16th Finance Commission cycle. That Commission recommended about ₹4.35 lakh crore in grants for rural local bodies.
Why it matters
[Policy] Panchayats get large Finance Commission grants, but many lack planning and audit capacity. This scheme funds that capacity. It makes Gram Development Plans and online audits yearly targets, which ties spending to accountability. It also reaches traditional bodies in areas outside Part IX, such as Scheduled and tribal areas. Exam hooks are Part IX of the Constitution, the 73rd Amendment, the 16th Finance Commission and centrally sponsored schemes.