CHANDIGARH – In a landmark move aimed at curbing the financial burden on parents, the Punjab government has approved a stringent ordinance to regulate the fee structures of private educational institutions across the state. Under the new directive, private schools will be restricted from increasing annual fees by more than 5% without explicit government authorization.
The decision, finalized during a recent Cabinet meeting, marks a significant shift in the state’s oversight of the private education sector. Finance Minister Harpal Singh Cheema and Education Minister Harjot Singh Bains announced that the move is designed to ensure transparency, accountability, and affordability in schools.
The 5% Threshold and Accountability
Under the newly approved framework, any private school—regardless of its affiliation with the Punjab School Education Board (PSEB), CBSE, ICSE, or international boards—must adhere to the 5% cap on annual fee hikes.
A critical component of the ordinance addresses retrospective grievances: schools that have implemented fee increases exceeding 15% over the past 36 months will be mandated to refund the excess amount to parents.
Stricter Oversight for Higher Hikes
The government has clarified that the 5% cap is not an absolute prohibition on higher increases, provided the school can justify the necessity. However, the path to a higher hike is now subject to rigorous bureaucratic scrutiny:
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Formal Application: Schools seeking an increase beyond 5% must apply at least six months before the start of the academic session, detailing the specific reasons for the hike, such as major infrastructure development or the addition of new facilities.
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Expert Review: Applications will be reviewed by a specialized committee comprising a Divisional Commissioner, two District Education Officers (DEOs), and a designated financial expert.
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Mandatory Audits: Permission will only be considered following a comprehensive financial audit of the institution.
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Public Disclosure: To prevent last-minute shocks to parents, all schools are now legally required to publicly disclose their finalized fee structures at least two months prior to the commencement of each academic year.
Administrative and Industrial Boost
Beyond educational reform, the Cabinet session also addressed regional development and industrial stagnation. The government has sanctioned the creation of new Additional Deputy Commissioner (ADC) posts in Phagwara and a new administrative jurisdiction covering Dasuha, Garhdiwala, Mukerian, Talwara, and Hajipur in the Hoshiarpur district.
Additionally, the state is moving to resolve long-standing fiscal bottlenecks for the private sector. The Cabinet approved the release of pending subsidies and incentives to 99 eligible industrial units. Government officials emphasized that this move is expected to improve the state’s investment climate and provide much-needed liquidity to local industries.
The ordinance is currently awaiting final approval from the Punjab Governor. Once enacted, it is expected to provide substantial relief to thousands of families and restore order to the state’s education economy.
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