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In a significant move aimed at protecting students and their families, the Punjab government has enacted a new regulation limiting private schools from raising their annual fees by more than 5%. This decision was approved by the Cabinet and is awaiting final approval from the Governor. Punjab's Finance Minister Harpal Singh Cheema and Education Minister Harjot Singh Bains announced this development after a Cabinet meeting, with Chief Minister Bhagwant Singh Mann also addressing the media on the topic.

This article will delve into the specifics of the legislation introduced by the Punjab government to prevent excessive fee increases by private educational institutions, along with other relevant provisions.

1. Refund of Excess Fees

According to Finance Minister Harpal Singh Cheema and Education Minister Harjot Singh Bains, schools that have raised fees by more than 15% in the past three years are required to refund the excess amounts to parents.

2. Justification for Fee Increases

Education Minister Harjot Singh Bains clarified that any school intending to increase fees by 5% must adhere to a specific procedure. A committee, which includes the Divisional Commissioner, two District Education Officers (DEOs), and a financial expert, has been established for this purpose. Schools will also need to conduct a financial audit and provide a rationale for the proposed fee increase.

Furthermore, all schools are mandated to disclose their fee structures two months before the academic year begins. This requirement applies to all institutions in Punjab affiliated with the Punjab School Education Board, CBSE, ICSE, and international boards.

3. Advance Application Requirement

Education Minister Harjot Singh Bains emphasized that schools must submit an application at least six months prior to any fee increase, detailing the reasons for the hike. For example, if a new facility is added or a building is constructed, comprehensive information must be provided. Simply submitting an application does not guarantee approval for a fee increase; the committee will evaluate whether the increase is justified. The committee's decision will be based on a financial audit of the institution, and subsequent actions will depend on the audit findings.