Cabinet approves Pradhan Mantri Viksit Gram Swaraj Yojana (PM-VGSY) as a Centrally Sponsored Scheme for 2026–27 to 2030–31; ₹7,395.55 crore

28 October 2026 · English Tamil Nadu

Topics: Jobs, Tamil Nadu, Law & Rural Development · 28 October 2026 Current Affairs (UPSC / TNPSC / SSC / RRB)

News

The Union Cabinet chaired by PM Narendra Modi on Wednesday, 28 Oct 2026, approved the 'Pradhan Mantri Viksit Gram Swaraj Yojana' (PM-VGSY) as a Centrally Sponsored Scheme (CSS) for 2026–27 to 2030–31 (co-terminus with the 16th Finance Commission period). Total outlay ₹7,395.55 crore – Centre ₹4,869.48 crore, States ₹2,526.07 crore. About 32 lakh elected representatives and functionaries in over 2.55 lakh panchayats and traditional local bodies will benefit. The Ministry of Panchayati Raj called it a next-generation governance transformation initiative aligned with Viksit Bharat.

Key facts

Background

• Earlier scheme: Rashtriya Gram Swaraj Abhiyan (RGSA) – launched 24 April 2018 (National Panchayati Raj Day); the revamped RGSA ran from 2022–23 to 2025–26 (₹5,911 crore), focusing on capacity building and governance of panchayats.
• Constitution: Article 40 (DPSP) – organise village panchayats. 73rd Amendment (1992; in force 24.4.1993) – Part IX (Articles 243–243O), Eleventh Schedule (29 subjects); three tiers, Gram Sabha, five-year term, State Election Commission, State Finance Commission. Part IX does not apply to Nagaland, Meghalaya, Mizoram and Sixth Schedule areas (Article 243M).
• History: The Balwant Rai Mehta Committee (1957) recommended three-tier 'democratic decentralisation'; the first Panchayati Raj began at Nagaur, Rajasthan, on 2 Oct 1959. The Ashok Mehta Committee (1977) recommended a two-tier system. The Ministry of Panchayati Raj was created in 2004.
• Economy: The 16th Finance Commission (Chairman Arvind Panagariya) has recommended about ₹4.35 lakh crore in grants for rural local bodies for 2026–27 to 2030–31. Raising panchayats' own-source revenue (such as property tax) is one of the scheme's goals.

Tamil Nadu link: The inscriptions of the Vaikunda Perumal temple at Uthiramerur (Kancheepuram district), of Parantaka Chola I (10th century CE), describe the 'Kudavolai' (pot-and-palm-leaf) election of assembly members – ancient evidence of local democracy. Today, under the Tamil Nadu Panchayats Act 1994, TN has a three-tier system (village panchayat – panchayat union – district panchayat) with over 12,500 village panchayats. TN holds six Gram Sabha meetings a year – 26 Jan, 22 Mar (World Water Day), 1 May, 15 Aug, 2 Oct and 1 Nov (Local Governance Day).

Source: IANS / Punjab Kesari, Rural Voice, Social News XYZ (28 Oct 2026); PIB (RGSA, Apr 2022); Sakshi Post (TN Gram Sabha); Wikipedia (Uthiramerur)

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