Approved by the Union Cabinet on 28 October 2026, PM-VGSY is a Centrally Sponsored Scheme (CSS) aimed at strengthening grassroots governance and aligning rural development with the vision of Viksit Bharat.

Key features

• Implementation period: 2026–27 to 2030–31, coinciding with the 16th Finance Commission period.
• Total outlay: ₹7,395.55 crore – Central share: ₹4,869.48 crore; State share: ₹2,526.07 crore.
• Coverage: All States and Union Territories, including traditional rural local government institutions in non-Part IX areas.
• Beneficiaries: Around 32 lakh elected representatives, Panchayat functionaries and other stakeholders across over 2.55 lakh Panchayats and Traditional Local Bodies.

Six key pillars

• Integrated planning: Preparation of holistic Gram Panchayat Development Plans (GPDPs), integrating local priorities, government schemes and available resources.
• Digital governance: Common digital platform building on existing eGramSwaraj and e-Panchayat systems.
• Citizen participation: Gram Sabhas, awareness campaigns and PANCHAM, an AI-enabled multilingual communication platform supporting 17 Indian languages.
• Capacity building: Training and digital handholding for elected representatives and Panchayat functionaries.
• Financial accountability: Online accounting, audits, public disclosure and mobilisation of Own Source Revenue (OSR).
• Local governance: Gram Panchayats as hubs of coordinated and participatory rural development.

Annual targets

• Gram Panchayat Development Plan (GPDP) Formulation: Supports more than 2.55 lakh local development plans annually via the eGramSwaraj portal.
• Public Awareness & Citizen Outreach: Reaches at least 1 crore citizens per campaign episode through Gram Sabhas and digital platforms.
• Stakeholder Training & Capacity Building: Trains around 32 lakh local representatives and functionaries annually to drive local SDGs.
• Financial Accountability & Online Auditing: Conducts at least 2.55 lakh annual digital audits via the AuditOnline application for transparent fund utilization.

Implementation

• Implemented through State Governments and UT Administrations.
• Annual Action Plans submitted by States/UTs and appraised by a designated Central Empowered Committee.
• No permanent posts; need-based contractual staff may be engaged at State, District and Block levels.

Important digital platforms