PM Modi Unveils Major Initiative for Rural Development and Empowerment of Panchayati Raj

New Delhi, October 28 (Daily Kiran) : Prime Minister Narendra Modi announced a significant step towards rural development during a cabinet meeting on Wednesday. The central government approved the Prime Minister’s Developed Village Self-Governance Scheme (PMGSVY) with a budget of ₹7,395.55 crores for the period from 2026-27 to 2030-31. Modi emphasized the government’s commitment to developing rural areas and empowering local governance.

In a post on social media platform X, Modi stated that the PMGSVY is a crucial initiative aimed at addressing local resources, capabilities, and challenges. This scheme is expected to enhance community participation, facilitating quicker achievement of sustainable development goals.

The initiative will see the central government contributing ₹4,869.48 crores, while state governments will provide ₹2,526.07 crores. According to an official statement, the scheme will conclude with the sixteenth Finance Commission’s term.

Approximately 3.2 million elected representatives, panchayat officials, and other stakeholders across over 2.5 million panchayats and traditional local bodies will directly benefit from this scheme. Awareness campaigns will aim to reach at least 10 million citizens.

The PMGSVY’s goal is to prepare 2.55 lakh comprehensive village development plans annually by integrating village priorities, interventions from relevant central and state departments, and available resources through the e-Gram Swaraj portal.

Each awareness campaign is projected to impact at least 10 million citizens. The initiative will utilize existing digital and public relations platforms, village assemblies, and other panchayat forums to enhance understanding of relevant government schemes and encourage informed discussions on their local impacts.

Additionally, the scheme will strengthen governance capabilities of around 3.2 million elected representatives, panchayat officials, and other stakeholders through capacity building and digital support. This will improve overall planning, communication with citizens, resource management, and progress towards locally relevant sustainable development goals.

The PMGSVY is also set to assist in the timely completion of at least 2.55 lakh online audit plans and related audits through online means. It aims to enhance accounting practices, public disclosure, and revenue generation from local sources, thereby increasing accountability for available funds and promoting financially self-sufficient panchayats.

According to the official statement, no permanent positions will be created under this scheme. However, to achieve its objectives and provide technical support, the initiative may appoint contract-based human resources at state, district, and block levels as needed.

The scheme will extend to all states and union territories, including areas not covered under Part IX, where local governance institutions exist without panchayats.

This initiative aims to improve the effective use of Finance Commission grants and other funds by panchayats, enhance the capacity to generate own-source revenue (OSR), and ensure online accounting, auditing, and public disclosure. Ultimately, this will promote transparent resource utilization, address local development gaps, and foster accountable, self-reliant panchayats.