Sikkim is set for early assembly elections.
Governor V Rama Rao on Wednesday dissolved the assembly seven months ahead of its tenure on the recommendation of the government.
Chief Minister Pawan Kumar Chamling drove down from Gangtok to Rangpo and submitted to the governor a letter recommending dissolution of the House.
The governor asked Chamling to carry on a caretaker government.
Chamling later said in Rangpo: "We want to go to the people as early as possible along with the Lok Sabha polls, not only to save money but also in the larger interest of the people of the state."
The Sikkim Democratic Front government headed by Chamling was due to complete its term in September 2004.