The Union Cabinet has approved a new Centrally Sponsored Scheme, PM VGSY, aimed at transforming rural governance. The scheme will extend to all States/UTs and run from 2026-27 to 2030-31.
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved a Centrally Sponsored Scheme (CSS), namely, the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY). The scheme is aimed at transforming rural governance and is aligned with the national vision of Viksit Bharat. It will be implemented from 2026-27 to 2030-31, co-terminus with the Sixteenth Finance Commission period.
Financial implications: The scheme outlay is Rs.7,395.55 crore, comprising a Central Share of Rs.4,869.48 crore and a State Share of Rs.2,526.07 crore.
Number of beneficiaries: 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. Each awareness-generation episode will reach at least 1 crore citizens.
Major impact including employment generation potential: The scheme aims to support the preparation of 2.55 lakh holistic Gram Panchayat Development Plans annually on the eGramSwaraj Portal, bring together village priorities, interventions of concerned Central and State departments, and available resources through participatory and evidence-based planning.
Source:
Press Information Bureau


