Government sanctions grant-in-aid for financially weaker panchayats for undertaking the developmental works. These grants mainly under the heading roads and communication and Health and Sanitation. The Pattern of assistance is as follows:

(a) Panchayat having annual incomeGovt. grantsPopular contribution
(b)Upto Rs.3.00 lakhs100% of project costNIL
(c)Between Rs.3.00 lakhs to Rs.4.00lakhs75% of project cost25%
(d)Between Rs.4.0lakhs to Rs.5.00lakhs50% of project cost50%<
(e) Above Rs.5.00lakhsNILNIL