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 income | Govt. grants | Popular contribution |
| (b)Upto Rs.3.00 lakhs | 100% of project cost | NIL |
| (c)Between Rs.3.00 lakhs to Rs.4.00lakhs | 75% of project cost | 25% |
| (d)Between Rs.4.0lakhs to Rs.5.00lakhs | 50% of project cost | 50%< |
| (e) Above Rs.5.00lakhs | NIL | NIL |