Instead, the State submitted that it was asked to reduce the levy percentage and spend it only on rural and agricultural needs, despite this domain being the sole prerogative of the State government.
Moreover, the Central government’s actions are also in violation of the Modified Fixation Principles in place since February 24, 2020, the State government said.
In this regard, it was pointed out that these principles aim to recognize the autonomy of the State government to determine the fees to be levied, which are then subsequently reimbursed by the Central government.
Source: Barandbench
