With a view to giving the incentive to take up development projects in rural and urban areas, the scheme of Matching Grant was introduced during the year 1979-80. This scheme is executed under the specific rules for projects, namely,school buildings, Veterinary dispensaries, Hospitals, Recreation Centres,Mahila Mandal Bhawans Harijan and Backward Chaupals and other development work through Panchayat/Panchayat Samitis, PWD (B & R) and Local Committees.The Matching Grant Scheme was introduced to bridge the gap and enables the people to seek financial help equal to the amount raised by them as public contribution except in the case of GirlsSchools, Girls Colleges & Hostels in the State, where the amount of grant is twice that of the contribution.This scheme has encouraged people's participation. The rural people themselves identify the projects and raise their public contribution and are associated throughout the implementation of the project. This scheme has evoked a big response from the people and every year there is an increase in the demand for this grant.

Under this scheme, an amount of Rs. 2700.00 lacs has been approved for the 12^th Five Year Plan (2012-2017). An outlay of Rs.250.00 lakhs has been provided for the year 2016-17,out of which Rs.142.62 lakhs has been released. In the year 2017-18, an amount of Rs.75.00 lakhs were sanctioned in the revised budget, out of which Rs.16.00 lakhs had been released.  Under the Scheme, an amount of Rs.490.54 lakhs have been spent during the present Govt. tennure. An amount of Rs.200.00 lakhs has been made for the year 2018-19, out of which an  amount of Rs. 58.89 lakh have been released. A budget provision of Rs.200.00 lakhs has been made for the year 2019-20.