Prelims
The Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY)
Context: The Union Cabinet, chaired by Prime Minister, approved the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY), as a Centrally Sponsored Scheme with an outlay of ₹7,395.55 crore for 2026–27 to 2030–31.
About The Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY):
What it is?
- A next-generation Centrally Sponsored Scheme (CSS) designed to overhaul rural local self-governance by placing Gram Panchayats at the center of holistic planning, digital monitoring, administrative capacity building, and transparent resource utilization across India.
Nodal Ministry: Ministry of Panchayati Raj, Government of India.
Aim: To strengthen Gram Panchayats as empowered, self-reliant and accountable institutions, aligning local development needs with national priorities and ensuring effective utilisation of ₹4.35 lakh crore in 16th Finance Commission grants.
Key Features of the Scheme:
- Financial Outlay & Cost-Sharing: Has a total outlay of ₹7,395.55 crore, comprising a Central Share of ₹4,869.48 crore and a State Share of ₹2,526.07 crore spanning a five-year cycle (2026–27 to 2030–31).
- Comprehensive Institutional & Citizen Reach: Directly benefits approximately 32 lakh elected representatives, Panchayat functionaries, and grassroots stakeholders across 2.55 lakh Panchayats and traditional local bodies, with awareness campaigns reaching at least 1 crore citizens per episode.
- Universal Geographical Scope (Including Non-Part IX Areas): Extends across all States/UTs, specifically covering institutions of rural local government and traditional local bodies in Sixth Schedule and non-Part IX tribal areas where standard Panchayats do not exist.
- Holistic Planning via eGramSwaraj: Integrates cross-departmental interventions of Central Ministries and State line departments into a single digital platform to prepare 2.55 lakh participatory, evidence-based Gram Panchayat Development Plans (GPDP) annually.
- Digital Transparency & Online Audits: Mandates the preparation of 2.55 lakh online audit plans annually and timely audit completions via AuditOnline, enhancing public disclosure and accounting standards.
- AI-Enabled Multilingual Citizen Engagement (PANCHAM): Deploys PANCHAM, an AI-powered two-way communication and outreach platform operating in 17 Indian languages, to demystify complex government schemes and stimulate deliberative Gram Sabhas.
- Own Source Revenue (OSR) & Fiscal Autonomy: Enhances local administrative capabilities to assess, levy, and collect local taxes and user charges, fostering financially independent and viable village institutions.
