The decision taken under the chairmanship of Chief Minister Hooda was sent to Haryana Governor Jagannath Pahadia.
The election of the 90-member Assembly was scheduled to be held in Oct 2009. The term of the present government was to end in Mar 2010.
The present Congress state government, which won nine out of 10 Lok Sabha seats in the Apr-May general elections has demanded an early poll.
"The cabinet has unanimously recommended immediate dissolution of the assembly to the Haryana governor. We have done it because it was the wish of the people and also of the opposition (in Haryana)," said Hooda.
Hooda added that the decision to dissolve assembly 'was also due to the love of Om Prakash Chautala', President of the state's main Opposition Indian National Lok Dal (INLD).
The present Assembly comprises 62 Congress legislators excluding the speaker. Six seats in the assembly are vacant presently due to resignations.
There are eight INLD legislators in the outgoing house while there are 10 independents.