Punjab Cabinet Approves Key Reforms in Education, Employment and Governance

August 5, 2026

Chandigarh: Under the leadership of Chief Minister Bhagwant Singh Mann, the Punjab Cabinet on Wednesday approved a series of major decisions aimed at strengthening education, improving governance, enhancing public service delivery and promoting inclusive development across the state. The Cabinet approved the Punjab Regulation of Fee of Un-aided Educational Institutions (Amendment) Bill, 2026, the Punjab State Outsourced Personnel Transition to Contractual Engagement Bill, 2026, the establishment of three new Digital Open Universities and several other policy initiatives. The decisions were taken during a meeting of the Council of Ministers held at the Punjab Vidhan Sabha.

The Cabinet approved the Punjab Regulation of Fee of Un-aided Educational Institutions (Amendment) Bill, 2026 to curb unnecessary and unreasonable fee hikes by private unaided educational institutions. The move comes after reports that some schools were arbitrarily increasing annual fees, placing an additional financial burden on students and parents. The amendment seeks to strengthen the existing provisions of the Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016, the 2019 amendment and related rules.

Outsourced Employees, Digital Universities Get Major Boost

The Cabinet also approved the Punjab State Outsourced Personnel Transition to Contractual Engagement Bill, 2026, which will allow eligible outsourced employees to transition to direct contractual engagement after five years of continuous service, or three years for those working in notified hazardous categories. The remuneration of contractual employees will be fixed by the Finance Department and will not be lower than the minimum wages prescribed under the Code on Wages, 2019. The Bill will also repeal the Punjab Ad Hoc, Contractual, Daily Wage, Temporary, Work Charged and Outsourced Employees’ Welfare Act, 2016.

To improve access to quality higher education, the Cabinet approved the Punjab Private Digital Open Universities Policy, 2026 and gave the green light for the establishment of Cloud University at Bohan (Hoshiarpur), MS Digital University at Fatehpur and PhysicsWallah Digital University at Nandpur Kesho (Patiala). These institutions are expected to enhance educational opportunities and contribute to regional development.

Administrative, Environmental and Rural Development Reforms Approved

The Cabinet approved a one-year extension of services for 449 Veterinary Pharmacists and 451 Safai Sewaks working in 582 Veterinary Hospitals across Punjab from April 1, 2026, to March 31, 2027, ensuring uninterrupted veterinary healthcare services.

It also approved the creation of Block Tarsika in Amritsar district by carving out 64 Gram Panchayats from Block Jandiala Guru to improve administrative efficiency and accelerate development in the area.

To strengthen infrastructure development, the Cabinet cleared the recruitment of 19 Draftsman (Civil) in the Public Works Department through direct recruitment to improve project monitoring, technical scrutiny and quality assurance.

The Cabinet also approved the Punjab Protection of Trees Bill, 2026, aimed at preserving green cover, maintaining ecological balance, preventing pollution and increasing the state’s forest and tree cover from 5.92 per cent to 7.5 per cent by 2030.

GST, Panchayati Raj Amendments Receive Cabinet Approval

The Cabinet approved amendments to the Punjab Goods and Services Tax (Amendment) Bill, 2026 to promote voluntary compliance, reduce litigation and simplify GST procedures. The amendments allow post-sale discounts through credit notes without prior agreements, simplify trade discount adjustments, extend provisional ITC refunds under the inverted duty structure and facilitate IGST refunds on exports, even for amounts below ₹1,000.

Additionally, the Cabinet approved amendments to the Punjab Panchayati Raj Act, 1994, providing for the merger of the cadres of Panchayat Secretaries and Gram Sewaks into a new cadre of Panchayat Development Secretary. Existing Panchayat Secretaries who submit a self-declaration within the stipulated period will be merged into the new cadre, while those who do not will continue in the Panchayat Secretary cadre, which has been declared a dying cadre.