The Union Cabinet has cleared a Centrally Sponsored Scheme for 2026-27 to 2030-31 that aims to make the Gram Panchayat the hub of holistic local development planning.

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• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Pradhan Mantri Viksit Gram Swaraj Yojana on October 28, 2026.
• PM VGSY is a Centrally Sponsored Scheme approved for implementation from 2026-27 to 2030-31.
• The total outlay is Rs 7,395.55 crore, made up of a Central share of Rs 4,869.48 crore and a State share of Rs 2,526.07 crore.
• The Central share accounts for roughly two-thirds of the total outlay.
• The scheme places the Gram Panchayat at the centre of holistic local planning and coordination of development initiatives.
• Panchayats will be supported to bring together village priorities, relevant government interventions and available resources.
• This is meant to let panchayats serve as the hub of grassroots development.
• The scheme extends to all States and Union Territories.
• More than 2.55 lakh Panchayats and Traditional Local Bodies will be direct beneficiaries.
• About 32 lakh elected representatives, along with panchayat functionaries and other stakeholders, will also benefit directly.
• Each awareness-generation episode under the scheme will reach at least one crore citizens.