IndiaPosted at: Oct 28 2026 5:45PM


Cabinet clears Rs 7,396-cr rural governance plan to empower 2.55 lakh Panchayats

New Delhi, Oct 28 (UNI) The union Cabinet on Wednesday approved the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY), a Centrally Sponsored Scheme with an outlay of Rs 7,395.55 crore for 2026-27 to 2030-31, aimed at strengthening grassroots governance, empowering Gram Panchayats and aligning national development priorities with the needs and aspirations of rural communities.
Announcing the decision after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw described the initiative as a next-generation governance transformation programme aligned with the national vision of Viksit Bharat.
The scheme, which will run concurrently with the Sixteenth Finance Commission period, seeks to build the institutional, administrative and digital capacities of more than 2.55 lakh Gram Panchayats and traditional rural local bodies. Around 32 lakh elected representatives, Panchayat functionaries and other stakeholders are expected to benefit directly from its capacity-building initiatives, while each coordinated public awareness exercise is expected to reach at least one crore citizens.
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