Center approves ₹7,396 crore panchayat capacity building plan 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 management capacity 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 that around 32,000,000,000,000,000,000 m elected representatives, panchayat functionaries and other stakeholders across 2.55 lakh g panchayats and traditional local bodies will be trained.

The new scheme is an improved version of the Rashtriya Gram Swaraj Abhiyan with more emphasis on ‘holistic’ development, as opposed to the existing practice of providing separate training modules for individual schemes. The aim is to offer panchayat representatives a ‘digital possession’ to help them with evidence-based planning. Although the government refers to the 32,000 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 preparation of 2.55 lakh Gram Panchayat Development Plans (GDPD) through the eGramSwaraj portal, which will enable alignment of village level priorities with central and state government schemes and resources.

As part of the programme, awareness campaigns will take place across the country, with each campaign expected to reach at least one million 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 – 28 Oct 2026 19:35 IST