Centre clears ₹7,396-crore panchayat capacity-building scheme for 2026-31

Prime Minister Narendra Modi. File | Photo Credit: ANI

The Union Cabinet on Wednesday (October 28, 2026) approved the Pradhan Mantri Viksit Gram Swaraj Yojana (PM-VGSY), a ₹7,395.55-crore scheme aimed at strengthening the planning and governance capacities of gram panchayats over the next five years.

The scheme will be implemented from 2026-27 to 2030-31 with a Central share of ₹4,869.48 crore and a State share of ₹2,526.07 crore. The government said around 32 lakh elected representatives, panchayat functionaries and other stakeholders across 2.55 lakh gram panchayats and traditional local bodies would be trained under the programme.

The new scheme is an upgraded version of the Rashtriya Gram Swaraj Abhiyan, with a greater emphasis on “holistic” development, as opposed to the existing practice of providing separate training modules for individual schemes. The idea is to offer “digital handholding” for the panchayat representatives to help them with evidence-based planning. Though the government refers to the 32 lakh representatives as “beneficiaries,” it does not offer any stipend.

The scheme seeks to position gram panchayats as the focal point of local governance and development planning. It envisages preparing 2.55 lakh Gram Panchayat Development Plans (GDPDs) through the eGramSwaraj portal, enabling village-level priorities to align with Central and State government schemes and resources.

Awareness drives will be conducted across the country as part of the programme, with each campaign expected to reach at least one lakh citizens. A key element of PM-VGSY is the creation of a common digital platform that will integrate information on government schemes, beneficiaries, community assets and available resources. This will help panchayats identify development gaps, improve departmental coordination, and monitor implementation more effectively.

Published - October 28, 2026 07:35 pm IST