In a policy push aimed at strengthening education, improving governance and boosting public service delivery, the Punjab cabinet on Wednesday approved a series of legislative and administrative measures. The decisions include a bill to curb arbitrary fee hikes by private unaided educational institutions, the establishment of three new digital open universities, a new framework for transitioning outsourced employees to contractual engagement and several other reforms related to environment, taxation, rural development and infrastructure.
The cabinet meeting chaired by chief minister Bhagwant Mann approved the Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Bill, 2026, which seeks to regulate unnecessary and unreasonable fee increases by private unaided educational institutions across the state.
According to a release issued by the chief minister’s office, the amendment has become necessary in view of complaints that several private unaided institutions were arbitrarily increasing annual fees, placing an undue financial burden on students and their parents.
The proposed legislation aims to strengthen the existing Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016, the 2019 amendment, and the rules framed under the Act to ensure that fee revisions remain justified and transparent, the release said.
In another decision, the cabinet approved the establishment of three new digital open universities under the Punjab Private Digital Open Universities Policy, 2026, aimed at attracting nationally and internationally reputed educational institutions to the state.
The approved institutions include Cloud University at Bohan in Hoshiarpur district, MS Digital University at Fatehpur and Physicswallah Digital University at Nandpur Kesho in Patiala district.
{{/usCountry}}The approved institutions include Cloud University at Bohan in Hoshiarpur district, MS Digital University at Fatehpur and Physicswallah Digital University at Nandpur Kesho in Patiala district.
{{/usCountry}}These universities are expected to expand access to quality higher education, promote digital learning and contribute to the socio-economic development of their respective regions, according to the release.
Relief for outsourced employees
The cabinet also cleared the Punjab State Outsourced Personnel Transition to Contractual Engagement Bill, 2026, paving the way for eligible outsourced employees to transition into direct contractual appointments.
Under the proposed legislation, outsourced personnel completing five years of continuous service — or three years in notified hazardous categories — will become eligible for contractual engagement.
The bill also provides that contractual employees will receive remuneration determined by the finance department, which cannot be lower than the minimum wages prescribed under the Code on Wages, 2019, or any other applicable law. It also repeals the Punjab Ad Hoc, Contractual, Daily Wage, Temporary, Work Charged and Outsourced Employees’ Welfare Act, 2016.
Extension for vet staff
To strengthen veterinary healthcare services, the cabinet approved a one-year extension for 449 veterinary pharmacists and 451 safai sewaks working in 582 veterinary hospitals across Punjab. Their engagement has been extended from April 1, 2026, to March 31, 2027.
The cabinet also approved the creation of Tarsika Block in Amritsar district by carving out 64 gram panchayats from the existing Jandiala Guru block. The government said the new administrative block would improve governance and accelerate development activities in the affected villages.
Additionally, approval was granted to fill 19 draftsman (civil) posts in the public works department through direct recruitment to strengthen technical capacity, improve project monitoring and ensure timely execution of infrastructure projects.
Tree protection and GST reforms
The cabinet approved the Punjab Protection of Trees Bill, 2026, aimed at conserving green cover, maintaining ecological balance and creating an institutional mechanism to compensate for environmental losses caused by tree felling.
With only 5.92% of Punjab’s geographical area currently under forest and tree cover, the government reiterated its target of increasing green cover to 7.5% by 2030.
In another decision, the cabinet cleared the Punjab Goods and Services Tax (Amendment) Bill, 2026, intended to simplify GST procedures, reduce litigation and encourage voluntary tax compliance.
The amendments will allow post-sale discounts to be excluded from the value of supply through credit notes without requiring prior agreements. They also provide for enhanced provisional input tax credit refunds under the inverted duty structure and facilitate refunds of IGST paid on exports, even where the refund amount is below ₹1,000, thereby improving liquidity for businesses and exporters.
Panchayati raj amendment approved
The cabinet further approved amendments to the Punjab Panchayati Raj Act, 1994, to streamline the rural development department by merging the cadres of panchayat secretaries and gram sewaks into a new cadre called panchayat development secretary.
Existing panchayat secretaries opting for the merger through self-declaration will be placed in the gram sewaks’ seniority list, while those who do not opt within the stipulated period will remain in the panchayat secretary cadre, which has been declared a “dying cadre”.