The term of the house with a strength of 243 MLAs expires on Wednesday.

Briefing reporters after the cabinet meeting, state cabinet coordination department Principal Secretary Afzal Amanullah said the cabinet met under the chairmanship of Kumar and this was the last meeting of the cabinet of the present tenure.

"The cabinet has decided to recommend to the governor to dissolve the 24th Vidhan Sabha with effect from tomorrow," he said, adding the dissolution would take effect from Wednesday after a formal notification would be issued by the Raj Bhavan.

The cabinet also thanked all state government employees for their co-operation and support during the past five years, he said.

The decision to dissolve the house to pave the formation of a new government was taken in consultation with the state advocate general P K Sahi, Amanullah said.

The cabinet also decided to effect a raise of ten per cent in dearness allownce of the the state employees, pensioners and those receiving family pension with retrospective effect from July 2010, a decision proposed by the state government much before the elections, he said.