The issue was taken up during the question hour by Congress MLA Gurkirat Singh in the state assembly.
The MLA sought a clarification from Education Minister Sikander Singh Maluka whether this scheme has not resulted in drop out of students and deterioration of the standard of education in the state.
At present the policy of the state government is not to fail any student upto the standard of eighth.
Leader of the House and Chief Minister Parkash Singh Badal also opined that schools must conduct tests of students till eighth class.
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Former Education Minister and SAD MLA Tota Singh said that due to this scheme the students at times don't even know counting when they reach class ninth.
"Education is a state subject and the practice of not failing students upto class eighth should be stopped," he said stressing that this would improve the standard of education in government schools.
Speaker Charanjeet Singh Atwal told the assembly that it was the Centre's policy not to fail any student till he or she reaches class eighth.