Cabinet clears ₹7,396-crore scheme to train panchayats

The new panchayat scheme: what happened?

Imagine being elected sarpanch with a budget of lakhs but no one to teach you how to make a plan, keep accounts or use a government portal. This scheme is meant to fill that gap.

• The Union Cabinet approved the Pradhan Mantri Viksit Gram Swaraj Yojana at a cost of ₹7,395.55 crore.
• It will run for five years, from 2026-27 to 2030-31.
• Who pays: the Centre gives ₹4,869.48 crore and the States ₹2,526.07 crore, so it is a Centrally Sponsored Scheme.
• It will reach about 32 lakh elected members and staff across 2.55 lakh panchayats and traditional local bodies.
• It is an upgraded Rashtriya Gram Swaraj Abhiyan (RGSA). Instead of separate training for each scheme, it will support “holistic” (all-round) village plans.
• About 2.55 lakh Gram Panchayat Development Plans will be prepared each year on the eGramSwaraj portal.

How do panchayats work, and why do they need training?

The 73rd Constitutional Amendment of 1992 gave panchayats constitutional status. It came into force on 24 April 1993, which is why 24 April is National Panchayati Raj Day.

It created a three-tier system in most States: village, block (intermediate) and district. It also reserved at least one-third of seats for women and seats for Scheduled Castes and Scheduled Tribes.

Article 243G lets States give panchayats powers over 29 subjects listed in the Eleventh Schedule, such as drinking water, roads and primary education. Every panchayat is expected to prepare a Gram Panchayat Development Plan (GPDP) each year.

But many panchayats depend on grants, have few staff and lack planning skills. The RGSA, launched in 2018, trained members; the new scheme builds on it with digital help and online audits.

Who pays for the scheme?

Which laws and Articles apply?

• 73rd Amendment, 1992: Part IX of the Constitution (Articles 243 to 243O) on panchayats.
• Article 243G: powers and responsibilities of panchayats; Eleventh Schedule lists 29 subjects.
• Article 243I: the Governor sets up a State Finance Commission every five years to review panchayat finances.
• Article 243K: the State Election Commission conducts panchayat elections.

Why does the new panchayat scheme matter?

What are the problems with the new panchayat scheme?

• Panchayats still depend heavily on grants from above.
• States have not handed over all 29 subjects with funds, functions and staff.
• ‘Proxy’ leaders, such as husbands acting for elected women, weaken real power.
• Weak internet and few computer operators slow digital work in remote villages.

What should be done next on the new panchayat scheme?

• Give panchayats the ‘three Fs’: funds, functions and functionaries (staff).
• Train members in their own language, with refresher courses every year.
• Help panchayats raise their own income, such as property tax.
• Use social audits through the Gram Sabha to check spending.

What can Prelims ask on the new panchayat scheme?

Prelims probability: Expect a statement question on the Pradhan Mantri Viksit Gram Swaraj Yojana: ₹7,395.55 crore, 2026-27 to 2030-31, an upgrade of the Rashtriya Gram Swaraj Abhiyan, with plans on eGramSwaraj.

• PM Viksit Gram Swaraj Yojana: ₹7,395.55 crore; 2026-27 to 2030-31; upgrade of RGSA.
• Centrally Sponsored: Centre ₹4,869.48 crore, States ₹2,526.07 crore.
• 73rd Amendment, 1992; in force 24 April 1993 (National Panchayati Raj Day).
• Article 243I: State Finance Commission, set up by the Governor every five years.
• Eleventh Schedule: 29 subjects; GPDPs are uploaded on eGramSwaraj.

How to write about the new panchayat scheme in Mains

Practice question (15 marks, 250 words): Panchayats in India remain dependent on grants and lack the capacity to plan for local development. In the light of the newly approved Pradhan Mantri Viksit Gram Swaraj Yojana, discuss how capacity building and digital tools can make panchayats effective units of local governance.

• Intro: the new ₹7,395.55 crore scheme; 73rd Amendment’s promise.
• Problems: grants, weak devolution, few staff, low skills.
• How the scheme helps: holistic plans, training, eGramSwaraj, online audits.
• Other steps: three Fs, own revenue, Gram Sabha social audits.
• Conclusion: skilled panchayats make Gram Swaraj real.